Japan's ruling party supports crypto ETF trading, yen-based stablecoins

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Japan's ruling party supports crypto ETF trading, yen-based stablecoins Japan's ruling Liberal Democratic Party said the country should create a legal framework for trading crypto ETFs in a proposal to the finance minister. By Jamie Crawley | Edited by Sheldon Reback Jun 1, 2026, 1:38 p.m. 1 min read Make preferred on (DavidRockDesign/Pixabay) What to know : Japan should create a legal framework for trading cryptocurrency ETFs, the ruling Liberal Democratic Party said. A party panel also said the state should promote usage of yen-based stablecoins. Japan would be joining other major markets such as the 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. Japan should create a legal framework for trading cryptocurrency exchange-traded funds (ETFs), the ruling Liberal Democratic Party (LDP) said, according to a Reuters report on Monday. A party panel on promoting blockchain technology submitted the proposal to Finance Minister Satsuki Katayama, also saying the state should promote usage of yen-based stablecoins. "Crypto-ETFs would provide investors with easy-to-understand ways of investment," the proposal said, according to Reuters' report. The country's cabinet approved a draft amendment to classify crypto as a financial product in April, having previously treated it as a payment tool. Japan would be joining other major markets such as the U.S. and Hong Kong in offering ETFs as a means to gain exposure to the crypto market without having to buy and store the underlying assets themselves. Attempts are already underway to develop and promote yen-based stablecoins , which are digital tokens pegged to the value of a traditional financial asset, such as a fiat currency. The $315 billion market is dominated by tokens pegged to the dollar, prompting concerns by policymakers in countries outside the U.S. that dollar dominance could circumvent their own banking and payments systems. Japan ETFs Stablecoins More For You How the House Financial Services Committee is taking on tokenization: State of Crypto By Nikhilesh De | Edited by Sheldon Reback 19 hours ago Rep. French Hill, head of the House Financial Services Committee, weighed in on outstanding policy issues in an interview with CoinDesk last month. Read full story Latest Crypto News CoinDesk 20 performance update: Stellar (XLM) surges 14.1% over weekend 29 minutes ago Bitmine slows ether purchase pace, buying $53 million worth last week 43 minutes ago Live markets: bitcoin retreats under $72,000 as Strategy unloads BTC for first time in four years 1 hour ago Michael Saylor's Strategy sold 32 bitcoin for $2.5 million in late May 1 hour ago Cardano Summit 2026 canceled after community votes against Foundation funding proposal 2 hours ago Strategy holds STRC dividend at 11.5% for fourth straight month 3 hours ago Top Stories Bitcoin and software stocks are breaking up — and history says a major crypto move is coming 3 hours ago Whitehat developer unlocks $2 million stuck in a 2016 Ethereum ICO contract for nine years 6 hours ago Three Sui mainnet halts in 48 hours traced to an upgrade bug by developers 7 hours ago A massive $1.26 billion sale of BlackRock’s IBIT was likely a rapid exit by a large investor 17 hours ago Aave overhauls listing standards after $230 million rsETH exploit exposed bridge risks 8 hours ago SEC sues Texas man over $12.3 million alleged crypto scheme built on fake AI trading bots May 30, 2026