Japan's Pro-Growth PM Takaichi Expected to Influence Crypto Tax Reforms

In the third quarter of 2025, the United States passed key crypto legislation including the GENIUS Act, which established a regulatory framework for stablecoins, enabling commercial banks to issue stablecoins under official oversight and boosting institutional investment into DeFi and tokenized real-world assets. Bitcoin stabilized at high levels with a growing share of holders being corporations and state entities, signaling mainstream adoption. Meanwhile, Japan witnessed political developments with Sanae Takaichi elected as leader of the ruling Liberal Democratic Party and poised to become the country's first female prime minister. Takaichi's pro-growth, fiscally proactive policies and willingness to collaborate with opposition parties may accelerate crypto tax reforms in Japan, potentially aligning crypto taxation with equity markets and addressing long-standing industry concerns. Her economic stance contrasts with prior cautious approaches and could bring renewed momentum to Japan's crypto market, which already saw a rise in risk appetite following her election. These changes in both the US and Japan indicate growing governmental recognition and integration of cryptocurrencies into formal financial systems globally.