Japan has completed the legislative process to move roughly 105 crypto assets out of the Payment Services Act and into the Financial Instruments and Exchange Act, the same statutory framework that governs stocks, bonds and investment trusts. The National Diet gave final approval on 15 July 2026, and the amendment was promulgated on 23 July 2026, with core provisions targeted to take effect during fiscal 2027. The bill cleared the House of Councillors on 15 July after passing the House of Representatives on 11 June and receiving Cabinet approval on 10 April.
Crypto issuers and custody providers will face significantly stricter obligations. Issuers must provide annual disclosures comparable to public companies, covering token supply, distribution, governance and risk factors. Custody operations must meet asset segregation and safeguarding standards under direct FSA supervision. The law also creates new insider-trading prohibitions for crypto assets, mirroring rules that have applied to Japanese equities for decades, and raises the maximum prison term for unregistered operators from three years to ten years.
Separately, Japan's 2026 Tax Reform Outline proposes cutting the top rate on crypto gains from approximately 55% to a flat 20.315%, with a three-year loss carry-forward. That change is not yet enacted and would apply only to gains on assets traded through registered exchanges. Depending on when the FIEA provisions are enforced, the new rate could begin in January 2027 or January 2028. Stablecoins remain outside the reclassification and stay under the Payment Services Act.
In the United States, the SEC has proposed a new securities framework for investment contracts linked to crypto assets. SEC Chairman Paul S. Atkins said the proposal aims to create more transparent avenues for raising capital under federal securities laws and to reduce the outflow of innovation from the crypto sector. The plan includes two registration exemptions under the Securities Act of 1933: one allowing issuers to raise up to $5 million over four years, and another permitting up to $75 million worth of securities each 12-month period. Issuers using the larger exemption must provide financial statements and meet ongoing reporting obligations.
The SEC proposal also creates a conditional safe-haven mechanism. If specified conditions are met, a crypto asset may no longer be treated as an investment contract once the issuer ceases essential managerial activities. The framework would also preempt state securities registration and qualification requirements for certain exempt crypto asset sales, including some secondary market transactions. The SEC argues this could reduce incentives for crypto companies to operate outside the U.S. and give investors access to more opportunities under consistent investor protection standards.
Together, the Japanese and U.S. developments signal a shift toward securities-style regulation in major markets. Japan's approach is often compared with the EU's MiCA regime, while the U.S. CLARITY Act remains under congressional debate. In Japan, industry representatives have warned that the regulatory burden may be excessive, noting that roughly 90% of domestic exchanges are operating at a loss. The new FIEA architecture may also eventually support spot crypto ETFs in Japan, though no product has yet been filed or approved.
