Japan Elects First Female PM: Can Sanae Takaichi Become A Turning Point For Country’s Crypto, Stablecoin Market?

[Ben Graham]

Japan’s “Iron Lady,” aka Sanae Takaichi, has made history after being elected as the country’s first female Prime Minister following a decisive victory in the 21 October 2025 parliamentary vote. What may be good news for the crypto world, Takaichi’s economic philosophy so far hints at a more favourable environment for digital assets. Meanwhile, Japan’s Financial Services Agency (FSA) has already called for a formal review of crypto taxation for 2026. 

Takaichi is a veteran conservative who secured 237 votes in the Lower House – ending decades of male-led leadership in the Liberal Democratic Party (LDP). She is expected to announce her new cabinet soon after being sworn in as the PM today, 21 October 2025. Interestingly, this was Takaichi’s third attempt to become Prime Minister. 

Current Finance Minister Katsunobu Kato’s stance on digital assets remains cautious, but new cabinet appointments could reshape Japan’s crypto policy.

US President Donald Trump hailed Japan’s first woman PM as a “highly respected person of great wisdom.” Trump is expected to visit Japan by the end of the month. Could crypto make it to the agenda?

Sanae Takaichi, leader of Japan's ruling Liberal Democratic Party, won the lower house vote to choose the next prime minister, clearing the way for her inauguration as the country's first female premier later in the day. Follow our live coverage: https://t.co/cSmsotLTxn pic.twitter.com/XwTFgfird7

— Reuters (@Reuters) October 21, 2025

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Takaichi Yet To Issue Direct Statements On Crypto

Takaichi’s opposition party – the Democratic Party for the People (DPP), led by Yuichiro Tamaki – has been advocating for fair crypto taxation for long. A collaboration with DPP- which seems possible- can help Takaichi prioritize a pro-deregulation stance.

So far, Takaichi’s administration seems to have been embracing growth-focused incentives that could open doors for long-discussed economic reforms. This may include bringing crypto tax to a flat 20% instead of the steep 55% applicable currently.

Japan’s top regulator has been advocating treating digital assets like stocks and allowing a three-year loss carry forwards. If this comes in place, it would most certainly reduce the crypto tax burden.

Japan Eyes Letting Banks Hold And Trade Bitcoin As Crypto Adoption Grows https://t.co/V0udT7vRuq

— zerohedge (@zerohedge) October 21, 2025

Read More: Japan Stock Market: What Sanae Takaichi Could Mean for Crypto

Japan’s Three Largest Banks Jointly Issue Stablecoin

On 17 October 2025, three Japanese banking giants including Mitsubishi UFJ, Sumitomo Mitsui and Mizuho announced that they are looking to jointly issue Yen-pegged stablecoins. They also plan to launch a USD stablecoin later.

“The banks will build a structure for their corporate clients to allow for stablecoins to be transferred between them along uniform standards, initially issuing a yen-pegged coin and potentially a dollar-pegged coin in the future,” said a Reuters report. 

By March 2026, a Yen-pegged stablecoin could be a reality.

Japan's three megabanks are planning to jointly issue corporate-use stablecoins using a system developed by Tokyo-based fintech firm Progmat.

MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank intend to issue the stablecoins under a unified standard for use in corporate… pic.twitter.com/GZrVU3xuzU

— Norbert Gehrke (@norbertgehrke) October 20, 2025

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Key Takeaways

Market reaction to Takaichi’s election has so far been positive. The Nikkei 225 surged on news of her parliamentary victory, with investors betting on fiscal stimulus, deregulation, and technology-friendly policies.

The crypto industry is now watching closely as Japan’s new prime minister prepares for the Trump summit and the 2026 legislative session. 

 

 

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