Japanese Prime Minister Shigeru Ishiba announced his resignation on September 7, citing the completion of trade negotiations with the United States and mounting dissent within his own party. His departure sets the stage for a leadership contest in the ruling Liberal Democratic Party (LDP).
The move adds uncertainty to Japan’s economic policies, including cryptocurrency regulation and digital industry initiatives that gained traction under Ishiba’s leadership.
Ishiba confirmed he would step down earlier than planned, following weeks of pressure for an early leadership race. Observers viewed the move as a de facto vote of no confidence. With his resignation, the party no longer needs to hold a separate vote and will now proceed directly to choosing his successor. Ishiba also clarified that he would not run again. He said his timing coincided with the conclusion of U.S. trade talks, highlighted by President Donald Trump’s executive order reducing automobile tariffs.
The decision reflects deepening political turmoil. After the LDP suffered a heavy defeat in the July upper house elections, opposition parties and Ishiba’s rivals pressed for change. On September 2, four senior party executives, including Secretary-General Hiroshi Moriyama, resigned together, leaving Ishiba increasingly isolated.
Japan Faces Uncertainty in Crypto and Web3 Policy
Ishiba’s departure carries significant weight for Japan’s crypto and Web3 ecosystem. In late August, he spoke at a Web3 event in Tokyo, stressing that emerging fields like blockchain and artificial intelligence are vital for the nation’s economic growth and for tackling social challenges. He had voiced strong backing for investment and regulatory reforms in the digital sector.
With new leadership on the horizon, however, the policy direction remains unclear. Former Economic Security Minister Sanae Takaichi and Agriculture Minister Shinjiro Koizumi have both emerged as frontrunners in the race to succeed him.
A Nikkei survey last month showed Takaichi leading with 23% public support, closely followed by Koizumi at 22%. Ishiba himself came in third with 8%. While both Takaichi and Koizumi have acknowledged the importance of digital assets, neither has presented a detailed plan for the sector’s future.
Japan also hosted WebX 2025 in Tokyo last month, a flagship Web3 conference that attracted more than 14,000 participants and over 170 side events. The gathering brought together policymakers, industry leaders, and developers to discuss topics ranging from tokenization and stablecoins to AI integration and Web3 gaming, highlighting the country’s growing role as a hub for digital innovation.
