Japan's ruling party supports crypto ETF trading, yen-based stablecoins
Summary
Japan’s ruling Liberal Democratic Party wants a legal framework for cryptocurrency ETFs and has urged Finance Minister Satsuki Katayama to support it. The proposal says crypto ETFs would offer investors a simpler, more accessible way to gain exposure to digital assets. It also calls for wider use of yen-based stablecoins. This comes as the cabinet has already approved a draft amendment to classify crypto as a financial product rather than only a payment tool. Japan would join markets like the U.S. and Hong Kong in allowing ETF-based crypto exposure. The push for yen stablecoins reflects concerns that dollar-pegged tokens dominate the $315 billion stablecoin market and could weaken local banking and payments systems outside the U.S.
