The ruling party in Japan proposes establishing a cryptocurrency ETF trading framework and promoting the development of the Japanese yen stablecoin.

BlockBeats News, June 1, according to Reuters, Japan’s ruling Liberal Democratic Party (LDP) Blockchain Promotion Group has submitted policy recommendations to Finance Minister Kasuyuki Katayama, urging the establishment of a dedicated legal framework for cryptocurrency exchange-traded funds (ETFs), while also promoting the adoption and application of the Japanese yen stablecoin.

The proposal notes that cryptocurrency ETFs can provide investors with an investment channel that is easier to understand and participate in, enabling them to gain exposure to the market without directly buying and holding crypto assets.

Earlier this April, Japan’s Cabinet approved a draft bill amendment that would redefine cryptocurrency—previously regarded as a payment instrument—as a financial product, laying the groundwork for subsequent regulatory framework adjustments.

If the relevant policies are implemented, Japan will join major markets such as the United States and Hong Kong, allowing investors to participate in the cryptocurrency market through ETFs.

At the same time, the Japanese government and industry organizations are actively working to promote the development of the Japanese yen stablecoin. Stablecoins are typically pegged to traditional financial assets such as fiat currencies. Currently, the global stablecoin market—about $31.5 billion—remains dominated by US dollar stablecoins. Some policymakers in countries outside the United States are concerned that the widespread use of US dollar stablecoins may weaken the influence of their domestic banking systems and payment networks, and are therefore exploring pathways for developing their own local-currency stablecoins.