EXCLUSIVE: How SEC's Draft Rules Could Restrict Global Blockchain Grants for Local Web3 Projects | Jan. 16, 2025
In this exclusive article only available on the BitPinas Newsletter, we will discuss what we think is the most important provision in the SEC Draft rules that needs to be addressed.
GM. In our feature article today, we’re going to discuss another provision in the SEC Draft Rules that, this time, could deter global blockchain projects from approving grants to PH-based organizations and web3-based projects.
The version of the feature article below is currently exclusive to this newsletter is not currently available on the BitPinas website:
Market Analysis and Updates 📈
Here are the crypto highlights of the day:
Crypto Price Update:
Bitcoin (BTC): $99,607.34, up 2.4% in the last 24 hours.
Ethereum (ETH): $3,371.02, up 4.4% vs yesterday.
Solana (SOL): $202.27, up 7.0% in the last 24 hours.
For the daily price update, check out our post on Facebook.
Feature: How SEC's Draft Rules Could Restrict Global Blockchain Grants for Local Web3 Projects
Background: The SEC released its draft "Rules on Crypto-Assets Service Providers," aiming to regulate the rapidly evolving crypto industry.
We covered the concerns of the community in separate articles on BitPinas as well as in a live webcast.
This time let’s focus on the section about marketing and promotions and other aspects that could potentially hinder the ability of local organizations to tap global blockchain companies for grants, etc.
Broad Definition of Marketing:
The draft rules broadly define marketing to include events, sponsored content, educational material, and airdrops.
This means that any grant-funded activity, such as hosting events or creating educational content, could potentially fall under the SEC's regulatory scope.
Local projects that receive grants often use these funds for promotional activities, which now risk being restricted unless conducted by registered Crypto-Asset Service Providers (CASPs) or authorized third-party providers.
Registration Requirements:
Grants received by local projects may need to comply with CASP registration requirements, which could be resource-intensive.
Smaller projects may struggle to meet these administrative and financial burdens, discouraging them from seeking or utilizing grants.
Risk to Collaboration and Support:
The global blockchain community might hesitate to provide grants to Philippine-based projects if the compliance process becomes too complicated or uncertain.
This could reduce opportunities for funding and collaboration.
Concerns Raised by Stakeholders
During the webcast, Atty. Rafael Padilla emphasizes that the SEC should focus only on regulating securities-related activities.
Extending regulation to non-securities Web3 projects could create unnecessary barriers, discouraging innovation and support.
Of course, that means there should be a clear classification as to which tokens are securities or which projects are dealing with tokens that are considered securities.
The problem here: there are thousands to millions of tokens. It will be very challenging to classify them all, especially as some tokens are blurring the lines.
The only recommended action is community feedback
Stakeholders are encouraged to submit comments to the SEC to narrow the scope of the proposed rules, ensuring they focus only on securities-related activities.
Comments on the draft rules are open until January 18. Submissions could stress the need to promote, not stifle, international support for local projects while ensuring compliance.
Send your feedback to fintech@sec.gov.ph
Remember, if the draft rules are implemented without revisions, they could stifle local innovation and reduce global support for Philippine blockchain initiatives. For myself, this is the most important issue with regards to the SEC draft rules.
The community need to engage with the SEC and help shape its rules so the growth of the crypto and web3 space in the Philippines continue.
Philippine Crypto News 🇵🇭
ScarletBox and Hearth Summit's Art For a Cause offer supporters the chance to buy artwork from national artists.
Sovrun partnered with Avarik Saga.
BitPinas article: Atty. Rafael Padilla explained that some SEC rules might affect grants from global blockchain companies to local projects.
Noteworthy 🌟
Key updates and announcements from around the crypto and blockchain world:
K33 analysts say macro headwinds have cooled Bitcoin's post-election surge, making Trump's inauguration less likely to trigger a sell-the-news event.
Regulators see platforms like Polymarket as gambling, targeting their sports prediction markets despite claims of being investment tools.
Crypto companies like Blockdaemon and Ripple are donating cash and cryptocurrency to support LA wildfire relief efforts.
Educational Corner 🎓
2025 update: Check out the updated list of web3 games built on top of the Ronin blockchain.
Regulation Watch 📜
Stay informed about the latest regulatory updates and what they mean for you:
The US, Japan, and South Korea issued a joint statement warning against North Korean crypto thefts.
NYDFS and Bank of England partner on 6-month staff exchange to align digital asset and emerging payment regulations.
Namibia's central bank granted two crypto firms six-month provisional licenses, restricting public operations until full compliance is achieved.
More Web3 and AI News 💡
Discover the latest in web3 and AI innovation.
Sigma Capital launched a $100 million fund to invest in early-stage Web3 startups.
Sky’s Spark Protocol is investing up to $1.1 billion in Ethena’s USDe and sUSDe tokens to boost returns and revenue for its ecosystem.
Donald Trump’s World Liberty Financial moved over $60 million in Ethereum for routine treasury management.
Web3 Gaming Section 🎮
The future of web3 is gaming, and here are the latest news.
Axie Infinity marked its milestones in 2024 and set the stage for major updates and the Axie World Cup in 2025.
The "Crash the Runiverse" event in Forgotten Runiverse invites players to stress-test the game's servers ahead of its 2025 global launch.
Avarik Saga partnered with Virtuals to create AI agents that can play and livestream games, including commentary and audience interaction.
Watch The Replay: BitPinas Webcast 📺
Steve Jimenez of IMPACT joined us in the latest BitPinas webcast to share his expertise on securing your digital assets and maximizing opportunities in the crypto space.
Watch the replay Facebook or on our website!
Event Announcements 📅
Don’t Miss Out: Upcoming events, webinars, and meetups in the crypto space!
Cebu Blockchain Conference: January 17-18, 2024
Avalanche Meetup: Powering the Future of Web3 Gaming: January 23, 2025
Proof of Community: January 25, 2025
IRL BitBulaga - Level Up: The 2025 Crypto Forecast : January 25, 2025
The Age of Play: Fan Engagement Supercharged⚡Manila Edition: February 21, 2025
Stay Connected:
Follow us on Twitter 🐦
Check us out on Facebook!
Join our Telegram group for real-time discussions!