Asia Web3 Alliance Japan has formally submitted a proposal to the Crypto Task Force of the US Securities and Exchange Commission (SEC), where he encourages the establishment of a joint regulation partner between Japan and the United States to promote tokenization and Web3 development.
The proposal, dated on 25 March and addressed to Commissioner Hester Peirce, called for a coordinated effort to reduce regulatory uncertainty, to coordinate legal frameworks and promote inclusive digital assets.
The initiative aims to establish a structured cooperation between the SEC and the Japanese authorities, including the Financial Services Agency (JFSA), the Ministry of Economy, Trade and Industry (Meti) and the Bank of Japan (BOJ), to develop shared standards for Tokenized Activa and Blockchain innovation.
The proposal emphasized that the lack of legal clarity and interoperability between areas of law remains an important barrier for the sustainable development of Tokenized economies in both countries.
Asia Web3 Alliance President Hinza Asif said:
“Tokenization will be a fundamental pillar of future economies. Japan and the United States share a responsibility to create a safe, innovative and inclusive digital financial system together.”
Care for industry
The proposal sketches various points for attention for Japanese Web3 startups, including the lack of a clear classification system for tokens.
Many projects struggle to determine whether their assets are eligible for effects, raw materials, stablecoins or utility tokens, which significantly increases the compliance risks.
Moreover, the absence of a formal regulatory route for token offers has made it difficult for emerging companies to launch or expand products in their own country worldwide.
The Alliance noted that although Japan has taken steps to modernize its digital activity policy, the legal guidelines remain fragmented and overly burdensome.
Startups must navigate inconsistent tax treatment and double legal assessments, which often leads to delays and increased operational costs. Without legal reciprocity, many companies are also excluded from participation in the American market, which further limits their access to capital and strategic partnerships.
Nuclear objectives
To meet these challenges, the Alliance proposes the launch of a US-Japan tokenization and Web3 Regulatory Collaboration Program.
The initiative would give priority to the development of a harmonized token classification framework, so that both governments can define categories such as “tokenized effects”, “utility tokens” and “digital assets” non-protection “using consistent language. It also advised guidelines for distinguishing native digital assetiology and traditional assertology.
Another core element of the proposal is regulatory interoperability. The Alliance stimulates mutual recognition of conforming tokenized offers, making cross -border issues possible with mutual disclosure requirements.
To support innovation in the early stages, the proposal for the introduction of a safe port mechanism in Japan is modeled on the discussions of the SEC. This mechanism would enable startups to work within a guided Sandbox environment with a clear path to compliance.
Shared standards
The proposal also deals with the need for shared standards for token trade and custody. It insisted on supervisors to build a common framework for permits and trading platforms, making it easier to mention and transfer tokenized assets in both areas of law.
In addition, it calls for making a bilateral web3 -controlling round table to support the current dialogue, share policy updates and coordinate joint research.
As the next step, the Alliance has requested a virtual planning meeting with the Crypto Task Force of the SEC and relevant Japanese agencies to initiate discussions.
It also proposes the formation of a joint working group of legal and policy experts to map legal gaps and a common basis between the two countries.
As part of a pilot phase, the Alliance proposed to select various American and Japanese startups to participate in a cross -border sandbox to test conforming token issue under the new framework.
