Due to the rising popularity of cryptocurrencies in 2022, the Government of Canada decides to pass new laws around their use, specifically focusing on criminal penalties for insider trading. The new Cryptocurrencies Act will ensure that users of cryptocurrencies are not using cryptocurrencies to purchase stock in non-traditional ways by using material non-public information.

Marcello is the first person to be prosecuted under this Act and wants to challenge its validity. The government claims that he used Dogecoin, a form of cryptocurrency, to move funds through an Exchange-Traded Fund (ETF) pooled investment, indexing a specific fund based on the company he works in.

Because Marcello is also under investigation in Ontario under securities law, he claims that the federal statute is ultra vires, and therefore invalid. At this time, Ontario does not have any securities law that focuses specifically on cryptocurrencies.

(A)What is the constitutional basis of Marcello's argument under the law? (1 mark)

(B) How are the courts likely to resolve this potential tension in legal powers? (3 marks)