Japan is moving to turn XRP from a speculative token into a piece of regulated financial plumbing, according to a new disclosure from an XRP advocate known on X as SonOfaRichard. He says the government is preparing to reclassify XRP under the Financial Instruments and Exchange Act (FIEA), a shift that would formally incorporate the token into Japan’s capital markets rather than treating it primarily as a payments or trading asset. Why this matters Under the FIEA, XRP would be regulated alongside traditional financial instruments such as bonds, funds and derivatives. That classification would deprioritize short-term price speculation and instead impose the kinds of structure and oversight institutions expect: insider-trading controls, custody audits, standardized disclosures and clearer rules for how XRP appears on institutional balance sheets. In short, Japan would be treating XRP as market infrastructure rather than an experimental crypto play. What SonOfaRichard reported In his post on X, the XRP expert laid out the regulatory and practical implications: the move is a regulatory change rather than a simple expression of market optimism. It’s designed to create a stable, compliant framework that could unlock institutional participation that has so far hesitated over legal uncertainty. Timeline and process This isn’t an immediate rebrand. Japan’s rulemaking follows its fiscal-year rhythm (April–March). Legislative submission is expected in 2026, with full implementation timed to the start of the nation’s fiscal cycle — likely in Q2 2026 — and only after formal approval. Regulators will proceed deliberately, focusing first on institutional treatment, custody, disclosure and compliance standards to ensure alignment with existing frameworks. Broader context Where countries like the U.S. and South Korea have largely viewed XRP through the lens of payments and trading volatility, Japan appears to be taking a structural approach: embedding the token into regulated capital markets. If realized, this could represent a major step toward mainstreaming XRP for institutional use — though it will be a phased, rule-driven transition rather than an overnight market endorsement. Read more AI-generated news on: undefined/news

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