XRP Gets Long-Awaited Timeline for Regulatory Clarity in Japan, $343 Million Flow into Bitcoin via ETF as BTC Price Stabilizes Above $70,000, Binance CEO Delivers Security Lifehack Useful for 2026: Morning Crypto Report

TL;DR

• Japan’s XRP pivot: Japan’s Cabinet approved a bill reclassifying cryptocurrencies as “financial assets,” clearing the path for Japanese banks to potentially use XRP for cross-border settlements.
• Bitcoin ETF rally: Institutional demand remains aggressive, with $343.1 million entering spot Bitcoin ETFs; BlackRock leads as BTC stabilizes above $72,000.
• The “Passkey” standard: Binance CEO Richard Teng declares passwords and SMS-2FA obsolete, urging a full shift to passkeys to combat $11 billion in annual fraud.
• Crypto Market Outlook: Focus shifts to the CPI report ahead of the weekend.

Japan prepares to recognize crypto: XRP at forefront

Japan, by the end of the week, made a fundamental step toward becoming one of the world’s key crypto hubs, as its Cabinet officially approved amendments to the Financial Instruments and Exchange Act, which will finally move cryptocurrencies from the category of “payment methods” to full-fledged financial assets regulated alongside stocks.

While the bill covers 105 assets, XRP stands at the forefront due to its unique position in Japan. This is not least because of SBI Holdings and its head Yoshitaka Kitao — a long-time supporter of Ripple — who have systematically integrated XRP into the country’s financial system through SBI Ripple Asia.

The new classification of assets as “securities or financial products” potentially removes the legal uncertainty that previously prevented major Japanese banks from fully using XRP for cross-border settlements — the token’s primary purpose.

Meanwhile, for those connected to the crypto market and Japan, the new framework implies:

• Insider trading is now criminally punishable.
• Issuers must publish annual reports.
• Market manipulation carries up to 10 years in prison and fines of up to 10 million yen.

The reform is part of a broader plan to reduce crypto taxes to a fixed 20% rate, similar to equities, aiming to attract part of the $34 billion held by 12 million local users. 

For XRP in Japan, this bill marks a transition from an “experimental technology,” widely endorsed by events like XRPL Japan this week, to a regulated banking standard.

ETF rally at $72,000 BTC: Institutional capital returns to Bitcoin

The end of the week has been positive for the U.S. spot Bitcoin ETF market. Despite cautious forecasts earlier in the month, capital inflows reached $343.1 million recently, as per SoSoValue, confirming sustained institutional demand above the $72,000 price range, and being the second major inflow this week after $471 million on April 6.

The bulk of it went to BlackRock’s iShares Bitcoin Trust, which recorded $269.3 million in net inflows. Second was Fidelity Investments with $53.3 million.

Notably, none of the 12 active funds recorded outflows during the period. Morgan Stanley entered successfully, too. On its second trading day, April 9, its fund attracted $14.9 million, offering the lowest fee in the market at 0.14%.

The current rise is supported by markets reacting positively to news of a two-week ceasefire and negotiations in the Middle East, reducing fears of an inflation shock from potential disruptions in key shipping routes.

Additionally, the options market saw a surge in interest for $80,000 per BTC call options totaling $1.6 billion, indicating expectations of a continued rally into June. Despite concerns of a correction after a 6% gain in April, the absence of outflows and the entry of new banking products provide a strong foundation for holding local highs.

Protection from $11 billion in losses: Binance CEO Teng reveals method that makes phishing useless

Amid record crypto fraud losses, Binance CEO Richard Teng issued a critical reminder that traditional security methods like passwords and SMS text messages are no longer sufficient in 2026. His key method to protect deposits is a full transition to passkeys.

According to the FBI’s IC3 report, crypto theft rose 22% in 2025, reaching an all-time high. Attack vectors have shifted toward more complex schemes. Social engineering using deepfakes generated nearly $900 million in losses.

About 40% of total losses came from older users, who are more likely to trust fake “investment advisors.” Standard two-factor authentication via cloud backups or intercepted codes has become a major vulnerability in 2025-2026.

Teng emphasizes that passkeys solve the fundamental human factor problem. Unlike passwords, which can be stolen or guessed, passkeys provide three layers of protection:

• Uniqueness and encryption: Key is generated locally on the device.
• Phishing resistance: Cannot be entered on fake websites, as WebAuthn verifies the domain automatically.
• Interception immunity: Even with AI-based voice or video impersonation, attackers cannot remotely access the physical cryptographic key stored in the secure enclave.

While many users still rely on the “password plus SMS” model, the industry in 2026 recognizes it as outdated. Passkeys effectively turn a smartphone or biometric data into a hardware-grade lock for a hot wallet.

Crypto Market Outlook: Bitcoin to be left alone on weekend amid key CPI report

Ahead of the weekend, the focus shifts from global events to the U.S. inflation report, which will determine short-term liquidity and risk appetite. 

Key points:

• Headline inflation is expected to accelerate to 3.3% to 3.4% due to rising energy prices, with oil above $100.
• Bitcoin remains compressed in a narrow range since February, with price consolidating near $72,000.
• XRPL Japan hosted the major XRP Tokyo 2026 conference, with the key highlight being Ripple’s projection of $33 trillion in on-chain stablecoin volume by the end of 2026 and SBI Ripple Asia’s launch of a fully regulated tokenized issuance infrastructure on XRP Ledger.