Japan's SANAE TOKEN controversy has intensified with reports suggesting Prime Minister Sanae Takaichi's office was informed about the token, contradicting her previous denials. The token, launched by NoBorder DAO on Solana, saw a dramatic rise and fall, prompting a Financial Services Agency (FSA) investigation into unlicensed operations. Amid the scandal, Japan's FSA has submitted a significant crypto reform bill to parliament, aiming to reclassify digital assets as financial instruments under the Financial Instruments and Exchange Act. This legislation, which includes stricter penalties for unlicensed crypto activities, is partly driven by the SANAE TOKEN case. The bill seeks to enhance regulatory oversight and protect investors, potentially reshaping Japan's crypto landscape.