Japan’s snap lower house election has delivered Prime Minister Sanae Takaichi a decisive mandate. Her ruling coalition secured a supermajority in the Lower House. It is the LDP’s largest single-party result in postwar history under former Prime Minister Shinzo Abe.

While crypto regulation was not a campaign issue, the election’s outcome will shape how quickly Japan implements the most ambitious digital asset reforms undertaken by any major economy. And with bond yields at multi-decade highs, Bitcoin down roughly 45% from its October peak, and the yen under sustained pressure, the macro backdrop makes the timing of those reforms more consequential than ever.

Japan’s Macro Environment & Market Sensitivity

Japan entered this…