The NFL has loosened its restrictions on blockchain-related marketing, paving the way for brands such as Coinbase, Crypto.com and FTX to strike sponsorship deals with teams.

The league had previously taken a strict stance on what it allows for digital currency asset brands—unlike the NBA, which has embraced them, including allowing crypto brand ads on jerseys. The NFL’s new rules fall short of full acceptance. For instance, it still bans teams from using the phrases “cryptocurrency” or “crypto” to describe sponsors. 

But teams can now sell sponsorships for blockchain-related categories including exchanges. That means that hypothetically, the L.A. Rams could strike a sponsorship deal with Coinbase, which operates a cryptocurrency exchange, as long as Coinbase is not described as the “official crypto sponsor of the Rams.” It might, for instance, be described as the team’s official “digital asset exchange brand” and gain access to trademarks such as team logos. Teams can also strike deals with brands that sell digital currency wallets, payment processors and ancillary services under the same provisions.

Read more: Metaverse and Web3 glossary for brands

By prohibiting the use of the phrase cryptocurrency the league wants to make it clear that it does not specifically endorse cryptocurrency, which still faces scrutiny from government regulators, according to league officials. In a memo issued to NFL teams explaining the policy, the league referenced an executive order President Biden issued earlier this month calling on the government to take a closer look at cryptocurrencies that could lead to new federal policies.

“In this evolving regulatory environment, it remains essential that we proceed carefully when evaluating potential commercial opportunities involving blockchain technologies, and conduct appropriate diligence on all potential partners and their business models,” the NFL’s memo stated.

The NFL’s policy changes—even with the restrictions—will likely translate into a lucrative new revenue source for the league and its teams. Advertising from crypto brands was permitted last year—just not sponsorships—and the appetite from crypto brands was on display during the Super Bowl, when Coinbase, Crypto.com, FTX and eToro all shelled out big money for in-game ads as they seek to gain mainstream interest. Individual players have also been allowed to appear in crypto ads, such as a recent campaign for FTX starring Tom Brady, who has a financial stake in the brand along with his wife Gisele Bündchen. 

The new policy also shows the NFL is continuing to show an openness to sponsorship categories that were once taboo. In 2021, for instance, it began allowing for league-wide liquor and sports gambling sponsorships. Those moves led to a 12% surge in sponsorship rights fees to $1.8 billion, last season, according to IEG, a sponsorship consultancy.

The NFL first began opening the door to blockchain-related partnerships in 2021 with several initiatives, including a deal with Dapper Labs to create digital video highlight NFTs for fans. The new policy allows NFT companies such as Dapper to now run ads during games. But only the league’s official NFT partners are allowed to use league and team trademarks. These include Dapper Labs, Ticketmaster (for virtual commemorative tickets), and Panini, which makes NFL trading cards in NFT form.

Subscribe to Ad Age now for the latest industry news and analysis.

“We are very bullish around the future of blockchain technology,” Joe Ruggiero, the NFL’s senior VP and head of consumer products, said in an interview. “We think there are real opportunities here to drive innovation, drive new fan engagement and connect with our fans in a unique way. We want to be at the forefront of innovation here.”

But “that said, we are being careful and thoughtful in terms of how we engage,” said Ruggiero, who has been leading the league’s exploration of blockchain technology. “We know it’s a new area and it’s an area that many of our fans might not have deep knowledge of.”