finance
Japan's Ruling Party Proposes Legal Framework for Crypto ETF Trading
The ruling party submitted a proposal on June 1, 2026, calling for rules to allow cryptocurrency ETF trading and greater use of yen-based stablecoins. The document was delivered to Finance Minister Satsuki Katayama.
Jun 1, 9:38 AM·1m read2 sources
japantimes.co.jpAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Japan's ruling Liberal Democratic Party submitted a proposal on June 1, 2026, recommending that the government establish a legal framework for trading cryptocurrency ETFs. A party panel on promoting blockchain technology delivered the document to Finance Minister Satsuki Katayama. The same proposal urged the state to promote usage of yen-based stablecoins.
"Crypto-ETFs would provide investors with easy-to-understand ways of investment," the proposal stated. Japan's cabinet approved a draft amendment in April 2026 that classifies crypto as a financial product. The country had previously treated crypto as a payment tool.
U.S. and Hong Kong in offering ETFs as a way to gain exposure to the crypto market without having to buy and store the underlying assets themselves. Yen-based stablecoins are digital tokens pegged to the value of a traditional financial asset such as a fiat currency.
Attempts are already underway to develop and promote these tokens. The stablecoin market totals $315 billion and is dominated by tokens pegged to the dollar.
