Japan's Financial Services Agency (FSA) has proposed the establishment of a new department, the "Crypto Assets and Innovation Division," as part of its 2026 fiscal year budget and organizational restructuring plan. This new division aims to address the growing needs in crypto asset trading and generative AI. It will be upgraded from the existing Counselor's Office to a formal division under the restructured "Asset Management and Insurance Supervision Bureau." The proposal includes a total budget of 25 billion yen ($170 million) and plans for staff expansion.