Japan’s LDP Calls For Crypto ETF Framework, Yen Stablecoin Push In New Proposal

Japan’s ruling Liberal Democratic Party (LDP) has urged the government to establish a regulatory framework for cryptocurrency exchange-traded funds (ETFs) and promote yen-denominated stablecoins. The proposal, submitted to Finance Minister Satsuki Katayama, emphasizes the need for crypto-ETFs as accessible investment vehicles in the financial market.

The LDP’s blockchain promotion panel highlighted the potential of crypto-ETFs to simplify digital asset investments for mainstream investors. This move aligns with broader efforts to strengthen Japan’s position in the global crypto sector, despite historical caution from regulators like the Financial Services Agency (FSA).

Earlier this year, reports suggested the FSA was considering amendments to the Investment Trust Act to include cryptocurrencies as eligible ETF assets, with enhanced investor protections. The proposal signals growing institutional recognition of digital assets as legitimate financial instruments.