Sanae Takaichi’s Rise Could Spark a New Era for Japan’s Economy and Crypto Reforms

Sanae Takaichi’s historic election as the Liberal Democratic Party (LDP) leader on October 4, 2025, paves the way for her to become Japan’s first female prime minister during the upcoming extraordinary Diet session on October 15. Known for her pro-growth and fiscally proactive stance, Takaichi aims to end deflation and revitalize Japan’s economy. While she has yet to outline her views on cryptocurrency, her economic orientation and willingness to cooperate with opposition parties could accelerate long-awaited crypto tax reforms.

Takaichi, often compared to Britain’s “Iron Lady” Margaret Thatcher, has had a long political career marked by key ministerial roles, including three terms as Minister of Internal Affairs and Communications. Her leadership style—assertive and uncompromising—signals a push for aggressive policy implementation. “I will abandon the concept of work-life balance,” she declared after her election, highlighting her determination to drive results.

Her cooperation with opposition parties such as the Japan Innovation Party and the Democratic Party for the People—both proponents of crypto-friendly tax reforms—could prove pivotal. These parties have advocated for separate taxation of crypto gains, aligning them with equities at about 20%, and allowing loss carryforwards for up to three years. The Financial Services Agency (FSA) has already proposed such reforms for FY2026, citing their inclusion in the government’s “New Capitalism Grand Design 2025 Revision.”

Takaichi’s upcoming summit with US President Donald Trump in late October could further shape Japan’s crypto outlook. Trump’s pro-crypto policies, including the creation of a Bitcoin strategic reserve, may influence bilateral economic discussions. However, Takaichi’s conservative values and focus on traditional industries could temper enthusiasm for digital assets. As Japan awaits her cabinet appointments, the cryptocurrency industry is watching closely—her leadership could mark a turning point for Japan’s digital economy.