Japan's newly formed cabinet, led by Prime Minister Asō Taro, is set to address significant tax reforms impacting the cryptocurrency sector. Key appointments include Finance Minister Kataoka Itsuki and Digital Minister Matsumoto Hisashi, who will navigate the 2026 tax reform in collaboration with the Japan Innovation Party. The Financial Services Agency has proposed a flat 20% tax rate for cryptocurrencies and the introduction of crypto ETFs, aiming to create a competitive tax environment while safeguarding the yen. Digital Minister Matsumoto is expected to continue advocating for Web3 advancements, while Finance Minister Kataoka focuses on maintaining fiscal discipline. The Japan Innovation Party's support for security tokens and stablecoins is anticipated to shape national policy. The government has prioritized crypto assets in its economic security strategy, with a vision to establish a yen-based digital economy.