Japan’s FSA to Reclassify XRP as Financial Product

Japan’s Financial Services Agency is reportedly planning to reclassify Ripple’s XRP as a regulated financial product in 2026, aligning it with traditional securities regulations.

This potential reclassification could enhance investor protection and boost institutional capital influx into XRP, offering a regulatory blueprint for other digital assets in Japan.

Stricter Regulations Set for XRP by 2026

Japan’s FSA allegedly views XRP’s reclassification as necessary to wrap it under the Financial Instruments and Exchanges Act, enhancing legal clarity. This move addresses widespread institutional adoption, setting a precedent for major digital currencies.

Creating “investment-grade” status would position XRP similarly to stocks and bonds, potentially drawing more institutional capital and offering insights into asset disclosure practices. The FSA’s decision could affect how exchanges operate and heighten compliance.

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The market’s current reaction is mixed due to the lack of official confirmation from major players like Ripple or Japan’s FSA. “It appears that there is a lack of primary source verification for the claims regarding Japan’s Financial Services Agency (FSA) and Ripple’s XRP reclassification,” notes an unnamed source. Investors and stakeholders await more concrete announcements. XRP’s future in Japan seems promising if these details hold accurate, with significant investment potential.

Current Market Insights and Potential Challenges for XRP

Did you know? A similar reclassification effort for cryptos in Japan in early 2026 set a regulatory path that broadened oversight for digital assets but did not specifically mention XRP.

XRP is currently priced at $1.90, maintaining a market cap of $115.47 billion, according to CoinMarketCap. It represents a market dominance of 3.86%. Recent trading volume fell by over 21%. Although the 24-hour price rose 0.97%, the 90-day trend fell sharply by 27.91%.

Financial analysts at Coincu expect challenges as Japan applies these regulations. XRP’s possible “investment-grade” status may lead to market shifts. However, without confirmed reports, market reactions remain muted. Institutional stakeholders are cautious but optimistic about clarity and protections echoed in the financial ecosystem.