The Asia Web3 Alliance Japan has submitted a proposal to the U.S. Securities and Exchange Commission’s Crypto Task Force

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

The Asia Web3 Alliance Japan has submitted a proposal to the U.S. Securities and Echange Commission’s Crypto Task Force, calling for a strategic collaboration on tokenization and Web3 regulation.

The proposal, seen by Blockworks, was sent to SEC Chair Gary Gensler and includes an invitation for the SEC to partner with Japan’s Financial Services Agency, the Ministry of Economy, Trade and Industry and the Bank of Japan. The goal is to create regulatory clarity and promote interoperability between the two countries’ markets.

The initiative, announced by the alliance on Thursday, highlights several key objectives. One is to develop a harmonized token classification framework. This would distinguish between tokenized securities, utility tokens and non-security digital assets.

The alliance also proposes a safe harbor mechanism for early-stage token projects, an idea that U.S. lawmakers are also mulling over. This would allow startups to experiment with their projects in a controlled regulatory environment before achieving full compliance.

Moreover, the proposal recommends establishing standards for cross-border token issuance, trading and custody. This would aim to enhance regulatory consistency and investor confidence.

The proposal suggests a mutual recognition framework that would permit compliant tokenized offerings to operate smoothly between the two nations, reducing legal and tax complexities.

The alliance’s letter to the SEC also mentions a U.S.–Japan Web3 regulatory roundtable. This initiative would create a forum for ongoing dialogue among regulators, legal experts and industry leaders. The goal would be to ensure that both countries can share policy developments, case studies and research findings.

The Asia Web3 Alliance maintains that regulatory uncertainty is a pressing issue for Web3 startups, especially in defining token categories and ensuring compliance across various jurisdictions.

The collaboration would “develop guidance for distinguishing native digital tokens vs. traditional securities issued via blockchain,” the letter stated.

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.