Asia Web3 Alliance Japan urges US partnership on tokenization, regulation

Japanese crypto advocacy group, the Asia Web3 Alliance Japan, has sent a proposal to the U.S. government in effort to strengthen ties around tokenization and regulatory innovation.

In  its letter dated Tuesday, the group sent to the U.S. Securities and Exchange Commission's Crypto Task Force a proposal to build "a strategic U.S.–Japan partnership on tokenization and Web3 regulatory innovation," adding that it is particularly interested in digital ownership and tokenized real-world assets (RWAs).

"Japan, while proactive, has yet to define clear pathways for web3 startups to issue tokenized assets without facing heavy legal burdens," the group also said. "The U.S., through the work of the Crypto Task Force, has made progress in identifying security categories and launching safe harbor discussions, which we believe can serve as a model for international cooperation."

The Japanese web3 group's proposal has been sent amid a significant sea change across the U.S. government regarding digital assets. In addition to U.S. President Donald Trump installing more crypto-friendly officials, specifically in the SEC, Trump is also backing projects like World Liberty Financial, which relies on his three sons as ambassadors. 

Additionally, in the proposal addressed to task force and its Commissioner Hester Peirce, the Japanese group proposed a series of measures, including creating a consistent way of classifying different elements such as "tokenized securities," promoting "regulatory interoperability," and facilitating "cross-border token trading and custody."