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Japanese Prime Minister Sanae Takaichi, often known as the “Iron Lady” of the country, won a historic victory in the snap parliamentary elections on February 8, 2026. Her party, the Liberal Democratic Party (LDP), is expected to obtain between 274 and 326 of the 465 seats in the post-war House of Representatives, representing the largest electoral party.
The decisive result strengthened Takaichi’s power and put her in a position to pursue ambitious economic and regulatory reforms.
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Sanae Takaishi in Japan won a landslide victory, paving the way for cryptocurrency tax reform
Markets reacted quickly to the result. The USD/JPY pair rose 0.2% to 157, while the BTC/YEN trading pair rose around 5%, indicating investor confidence in Takaichi’s pro-growth agenda.
This so-called “Takaichi agreement” derives its impetus from expectations of fiscal stimulus, a flexible monetary policy, and…Increased liquidity .
Japanese stocks have already pushed to new highs, while government bonds and the yen have come under pressure.
US officials were quick to comment on the result, with US Treasury Secretary Scott Besent calling the victory “historic” and emphasizing the strength of US-Japan relations under Takaichi’s leadership.
A few days ago, President Donald Trump also proposed a full approval, Highlighted His leadership qualities and recent achievements in the fields of trade and security.
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In turn, Takaichi expressed his gratitude, confirmed his plans to visit the White House in the spring of 2026, and described the US-Japan alliance as having “unlimited potential” based on deep trust and cooperation.
Takaishi’s mandate points to the potential for cryptocurrency tax reform and supportive policies for blockchain technology
Takaishi’s election mandate is widely seen as a green light to speed up crypto reforms in Japan. Currently, the state taxes digital currency profits as miscellaneous income at rates of up to 55%. Click here for more.
This framework has pushed some investors abroad despite Japan’s leading position in adopting blockchain technology.
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Discussions for fiscal year 2026 reforms may include:
- reduction Profit tax at around 20%
- They allow losses to be carried forward for three years, and reclassify certain digital assets as financial products.
There is a general feeling that his pro-growth policies and willingness to cooperate with opposition parties that support crypto, such as the Innovation Party of Japan and the Democratic People’s Party, could finally push these measures expected from 2028.
Prior to his tenure, Takaishi supported policies that support technology, innovation and economic security, in line with the development of blockchain and…Web development 3.
Although he did not make cryptocurrencies a central theme of his election campaign, his aggressive financial position, drawn from his mentor Shinzo Abe and the “Abenomics” strategy, can create an economic environment that favors risk assets, including Bitcoin, Ethereum, and digital projects linked to Japan.
Rob Wallace asked about Takaishi’s commitment to an aggressive fiscal policy financed largely by bond issuance… Will his election momentum lead to greater stimulus, or will he provide political cover to proceed more cautiously, with investors remaining wary of Japan’s huge debt burden and the recent rise in the Japanese Treasury yield curve? For more.
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Some doubts remain. Japan’s national debt exceeds 250% of GDP after the peak of 232.35% in 2025. At the same time, it has risen. Recent increases in government bond yields Investors are concerned about the sustainability of fiscal policy.
Key Cabinet appointments and regulatory priorities set the pace and scope of cryptocurrency reform. Finance Minister Katsunobu Kato continues in his role can maintain policy continuity, although his limited participation in cryptocurrency issues may limit ambitious changes.
The Minister of Digital Affairs, Masaaki Taira, has not yet expressed specific positions on cryptocurrencies or Web3.
The Financial Services Agency of Japan indicated through His ongoing proposalscoupled with Takaichi’s strong political mandate, it marked a turning point for Japan’s digital asset sector.
If achieved, these reforms will provide clearer regulatory frameworks, tax relief and legal recognition for digital currencies, establishing a more supportive platform for innovation in the ecosystem.
