Prime Minister Sanae Takaichi has framed Japan’s snap general election as a high-stakes referendum on her leadership and crypto reform agenda, with her political future and that of her Liberal Democratic Party (LDP) on the line. She hopes to translate high personal approval ratings into a parliamentary majority, potentially expediting legislative changes such as slashing crypto taxes from up to 55% to a flat 20% by 2028, reclassifying cryptocurrencies as financial assets, and launching crypto ETFs. Japan is contending with persistent inflation, weak real wages, and surging bond yields, with public debt over twice GDP, making tax reforms and fiscal discipline urgent election concerns alongside yen weakness. Industry leaders suggest that even if the election result is fragmented, crypto tax reform is nearly certain, though more contested outcomes would slow other reforms. Key crypto reforms—covering tax, stablecoin rules, and tokenized assets—enjoy broad political support, but a populist coalition could shift crypto policy toward heavier taxation rather than strategic infrastructure. Japan’s crypto industry is being driven by large corporations and banks, with government agencies and major parties now institutionally committed to advancing Web3. The country aims to position itself as a leader in deploying institutional capital via on-chain finance.