Japan’s ruling party is pushing for crypto ETFs and stronger support for yen-denominated stablecoins.
Crypto News
Lawmakers in Japan's ruling Liberal Democratic Party (LDP) are pressing for new rules on crypto exchange-traded funds (ETFs). They also want state support for yen-denominated stablecoins.
The party's Parliamentary Association for the Promotion of Blockchain gave its recommendations to Finance Minister Satsuki Katayama on June 1, according to reports from Nada News and Reuters. The proposals covered stablecoins, ETFs, central bank digital currencies (CBDCs), and wider uses of blockchain.
One recommendation calls for doubling the leverage cap on retail crypto derivatives trading. Another asks for a legal framework so investors can trade funds tied to digital assets.
The proposal said crypto ETFs would give investors a clearer way into the market, per Reuters. Such funds offer people exposure to digital assets without buying or storing the tokens.
Katayama said Japan "must move forward without falling behind global developments," pointing to crypto rules in the US. LDP member Junichi Kanda said at a June 1 press conference that Japan should expand on-chain finance across Asia, including yen-based stablecoins.
The push follows an April decision by Japan's cabinet to approve a draft amendment classifying crypto as a financial product, a change from its earlier treatment as a payment tool. The Financial Services Agency was also reported to be preparing rule changes to permit crypto ETFs.
Yen Stablecoins Eye Global Market
A move into stablecoins would place Japan in a global market worth more than $300 billion, one dominated by tokens pegged to the US dollar. A Bank for International Settlements report in April found that yen-pegged stablecoins were worth less than 0.01% of dollar-pegged coins.
The interest follows the US GENIUS Act, which set up a framework for payment stablecoins. Policymakers outside the US worry that dollar-backed tokens could bypass their own banking and payment systems.
ETF approval would put Japan alongside the US and Hong Kong in offering the products. Prediction market platform Polymarket was separately reported to be seeking entry into Japan by 2030, though the country's strict gambling laws may complicate that plan.
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