The Asia Web3 Alliance Japan has submitted a proposal to the U.S. Securities and Exchange Commission’s Crypto Task Force, advocating for a strategic collaboration on tokenization and Web3 regulation.
The proposal sent to the SEC calls for a joint effort between the SEC, Japan’s Financial Services Agency, the Ministry of Economy, Trade and Industry, and the Bank of Japan to establish regulatory clarity and foster interoperability between the two markets.
The initiative highlights several key objectives, including the development of a harmonized token classification framework to distinguish between tokenized securities, utility tokens, and non-security digital assets.
It also proposes a safe harbor mechanism for early-stage token projects, similar to models being explored in the U.S., allowing startups to test their projects in a controlled regulatory environment before achieving full compliance.
Additionally, the alliance recommends the establishment of standards for cross-border token issuance, trading, and custody, aiming to enhance regulatory consistency and investor confidence.
The proposal suggests a mutual recognition framework that would allow compliant tokenized offerings to operate seamlessly between the two countries, reducing legal and tax uncertainties that currently hinder Web3 innovation.
U.S. and Japan roundtable
A core component of the proposal is the launch of a U.S.–Japan Web3 regulatory roundtable. This initiative would facilitate ongoing dialogue between regulators, legal experts, and industry leaders, ensuring that both nations can share policy developments, case studies, and research findings.
The Asia Web3 Alliance argues that regulatory uncertainty remains a major challenge for Web3 startups, particularly in defining token categories and ensuring compliance across multiple jurisdictions.
The letter stated that the collaboration would “develop guidance for distinguishing native digital tokens vs. traditional securities issued via blockchain.”
As a next step, the alliance recommends an initial planning meeting between SEC officials and Japanese regulators and the selection of pilot projects to test cross-border tokenization frameworks.
