Dewi is a Masters alumni and budding Balinese artist. She spends hours hand-drawing elaborate batik patterns, her fingers permanently dyed blue by indigo under the blazing equatorial sun. She dreams of being able to show her art to the world, but galleries are difficult to get into and online platforms take 30% commissions. In this context, Web3—where collective artist-collector relationships and creations can be tokenized—seems like a possible lifeline. Can she, can anyone like her, truly traverse this brave new world and avoid the booby traps lurking around this promising new frontier? Will titans such as BlackRock lead the way for Wall Street to take control of yet another market? If they don’t, Dewi and millions like her could fall through the cracks.

Whose Innovation Are We Talking About?

BlackRock’s extraordinary recent overtures to the SEC’s newly formed Crypto Task Force are understandably raising eyebrows, and for good reason. We’ve seen this first this year in conversations around crypto ETPs (Exchange Traded Products), staking and tokenization. On the surface, it sounds progressive. But let's be real: Is BlackRock suddenly concerned about the struggling artist in Southeast Asia? Or are they just plotting new ways to make hot crypto available to their institutional clientele, thus fattening their own wallets even more.

Even now, BlackRock is calling for guidance on regulation. I just have to think their teeing things up here in hopes of bending the regulatory landscape to their peculiar benefit. Or are they just writing the rules of the game in a way that only they can succeed. We need to be asking these questions.

The devil is in the details, and the details here are as thick as molasses in January. BlackRock's discussion of in-kind redemptions, staking in ETPs, and tokenization feedback – these aren't topics that immediately scream "artist empowerment." These are very complicated financial instruments, which, if not administered with extreme thoughtfulness, will quickly deepen these inequities already present in the art world.

Southeast Asia's Cry For Recognition

Southeast Asia, with its rich artistic heritage and developing tech hub, is a hotbed of creativity and potential for Web3. Artists like Dewi face significant hurdles. Capital is always a challenge to access and the internet connectivity infrastructure is frequently very fragile. Further complicating matters is the gap in regulatory clarity.

  • Limited Capital: Traditional funding sources are often inaccessible.
  • Regulatory Uncertainty: Navigating the legal landscape is complex, even for lawyers.
  • Technical Expertise: Understanding blockchain and tokenization requires specialized knowledge.

Now picture a world where Dewi is able to tokenize her batik designs. Now, she’s able to sell fractional ownership to collectors around the globe, sidestepping traditional gatekeepers and being rewarded equitably for her work. That's the promise of Web3. In order to do this, we’ll need more than BlackRock’s blessing. What we require are solutions that are equitable, that consider the needs of artists first, particularly in emerging markets.

Call To Action: Demand Actual Change

Here's what BlackRock and the SEC could do to ensure that Web3 benefits everyone, not just Wall Street:

  1. Education First: Invest in education and outreach programs specifically tailored to Southeast Asian artists. Teach them about blockchain, tokenization, and how to protect their intellectual property.
  2. Sandbox It: Create regulatory sandboxes where artists can experiment with tokenization and ETPs in a safe and controlled environment, without fear of inadvertently running afoul of complex regulations.
  3. Accessibility Matters: Ensure that any new financial products are accessible and affordable for artists with limited capital. Lower fees, simplified processes, and multilingual support are crucial.
  4. Demand Transparency: Push for increased transparency in the crypto industry. Artists need to understand the risks and potential rewards of participating in this new ecosystem.

BlackRock’s continued engagement with the SEC may be a great sign for the future of crypto in the mainstream. But only if it’s done right. We need to hold them accountable. And we can’t allow them to make Web3 into another toy for the super-duper-rich.

It’s high time to hold BlackRock accountable to walk the talk and actually free artists to do their work — rather than just their profit margins. Web3 education to artists in emerging markets Sign this petition Support these organizations donating grants and other resources to creators throughout Southeast Asia. Write your elected officials today to demand equitable crypto regulations.

Dewi’s dreams, and the dreams of thousands of other artists need it to happen.