Today in crypto, Japan’s Financial Services Agency (FSA) has proposed classifying crypto as financial products, potentially allowing for exchange-traded funds (ETFs) and a flat 20% capital gains tax on crypto, an Ethereum developer has proposed changes that would double Ethereum block speed as part of the Glamsterdam update in 2026, and a new bill introduced in the US Congress seeks to ban public officials from profiting off digital assets.
Japan proposes reclassifying crypto, paving way for ETFs and lower taxes
Japan’s FSA proposed a sweeping reclassification of cryptocurrencies that would clear a path for the launch of crypto exchange-traded funds (ETFs) and introduce a flat 20% tax on digital asset income.
The proposal, introduced on Tuesday, suggests recognizing crypto as “financial products” under the scope of the Financial Instruments and Exchange Act (FIEA), the same regulatory framework that governs securities and traditional financial products.
The proposed reclassification could also shift Japan’s current progressive tax system, which taxes crypto gains at rates up to 55%, to a uniform 20%, mirroring the treatment of stocks. That change could make crypto investing more attractive to both retail and institutional players.
The proposed shift is part of the Japanese government’s broader “New Capitalism” strategy, which seeks to position the country as an investment-led economy.
The move comes amid increasing interest in crypto as a legitimate investment asset. According to the FSA, more than 12 million domestic crypto accounts were active as of January 2025, with assets held on platforms exceeding 5 trillion Japanese yen (about $34 billion).
In the proposal, the FAS also revealed that crypto ownership now surpasses participation in some traditional financial products, such as FX and corporate bonds, particularly among tech-savvy retail investors.
The proposal also responds to the surge in institutional engagement worldwide. The FSA cited data showing over 1,200 financial institutions, including US pension funds and Goldman Sachs, now hold US-listed spot Bitcoin ETFs.
Japanese regulators aim to support similar developments domestically, especially as global fund flows into crypto continue to expand.
Ethereum dev floats halving slot times to 6 secs, doubling blocks
An Ethereum developer has issued a proposal that suggests cutting the network’s block time in half — from 12 seconds to six seconds — with the aim of improving transaction confirmation time and user experience.
Ethereum Improvement Proposal 7782, discussed on June 21 by core developer Barnabé Monnot, suggests cutting the slot time — how often new blocks are created — to six seconds by adjusting the timing of various blockchain operations.
“Shorter slot times make the confirmation service better, and so have the potential to raise the service price beyond where it is today,” Monnot explained, referring to the economic value that the network can capture for providing its core service as a settlement and confirmation layer.
The developer is seeking for the proposal, originally created in October 2024, to be included in the Glamsterdam update scheduled in late 2026. “By then, we will have done a lot of healthy scaling” and likely reached blocks with three times the current gas limit and eight times the blob supply, he added.
Democratic senator introduces bill to address Trump’s crypto ties
California Senator Adam Schiff and nine other Democratic lawmakers have introduced legislation to prevent what they called “financial exploitation of digital assets” by the US president and other public officials.
In a Monday announcement, Schiff and several Democratic senators said they had introduced the Curbing Officials’ Income and Nondisclosure, or COIN, Act, in response to US President Donald Trump’s connections to the cryptocurrency industry. The proposed legislation followed Trump’s disclosure of $57.4 million in income tied to World Liberty Financial (WLF), the crypto platform backed by members of his family.
“President Donald Trump’s cryptocurrency dealings have raised significant ethical, legal and constitutional concerns over his use of the office of the presidency to enrich himself and his family,” said Schiff. “That’s why I am introducing legislation to prevent the financial exploitation of any digital assets by public officials, including the president and the First Family.”
Members of Congress have previously attempted to push through legislation barring certain elected officials, including presidents and their families, from investing in stocks and other assets while in office. However, Schiff’s proposed bill could extend a prohibition on issuing, sponsoring or endorsing cryptocurrencies, memecoins, non-fungible tokens and stablecoins “180 days prior to and 2 years after” an individual’s time in office.
