Asia Web3 Alliance Presents US–Japan Tokenization Partnership Proposal to SEC
Asia Web3 Alliance Japan has submitted a proposal to the United States Securities and Exchange Commission’s (SEC) Crypto Task Force, calling for a strategic partnership with Japan’s financial regulatory bodies to enhance Web3 regulation and tokenization frameworks between both countries.
Joint Regulatory Goals
The proposal envisages a multi-agency collaboration between the SEC, Japan’s Financial Services Agency, the Ministry of Economy, Trade and Industry, and the Bank of Japan. It demands regulatory certainty and cross-border operability to foster digital asset innovation.
Key goals are:
- A unified token classification system to distinguish between securities, utility tokens, and non-securities
- A safe haven provision for startups to experiment under reduced regulatory conditions
- Cross-border issuance, trading, and custody standards for tokenized assets
Safe Harbor and Cross-Border Standards
The safe harbor solution would establish a sandbox for early-stage projects to evolve in a controlled environment, the same discussion being repeated in the U.S. This would permit Web3 companies that are nascent to innovate without direct regulatory pressures.
In addition, the Alliance is promoting synchronized regulations that would allow digital assets to be freely issued and traded between Japanese and U.S. markets, with the aim of removing legal and tax barriers that currently impede cross-border collaboration.
U.S.–Japan Web3 Roundtable
A central aspect of the proposal is the establishment of a U.S.–Japan Web3 regulatory roundtable. The forum would facilitate ongoing dialogue between regulators, industry stakeholders, and legal experts, with an eye to enabling mutual understanding and policy coordination.
The Alliance noted that ongoing uncertainty around token definitions and cross-border compliance is hindering the growth of the Web3 industry. A coordinated framework could alleviate these concerns while enabling regulatory innovation.
Next Steps
The Alliance recommends that U.S. and Japanese regulators hold an initial planning meeting and identify pilot projects to test the proposed regulatory and tokenization frameworks.
The initiative shows growing momentum for global coordination in the Web3 space that is advancing so quickly, with Asia doing its part to help shape global crypto policy.
