Stand With Crypto, a political advocacy group backed by Coinbase, has launched a $6 million legal defense fund for NFT creators.
Stand With Crypto Fund Creation
The Stand With Crypto fund is backed by venture capital firm a16z and NFT marketplace OpenSea, as well as several top law firms including Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP. The fund's launch comes in response to increasing regulatory pressure from the U.S. Securities and Exchange Commission (SEC), which issued a Wells notice to OpenSea last August over the sale of unregistered securities.
Aims of the New Fund
In addition to providing legal protection, the fund will help artists and developers ensure their NFT projects comply with existing laws. The CEO of OpenSea mentioned that the fund aims to provide legal resources not only to creators but also to developers operating in legally challenging environments.
Support for the Crypto Community
The legal defense against these charges is part of a broader regulatory squeeze on the cryptocurrency sector. The SEC has also pursued enforcement actions against major cryptocurrency exchanges like Coinbase, Binance, and Kraken for alleged violations of securities laws. With Stand With Crypto, Coinbase positions itself as one of the most vocal defenders of the crypto community.
The launch of the Stand With Crypto fund represents a significant step in protecting the rights of NFT creators and developers amidst increasing regulatory scrutiny. The fund's team hopes to successfully provide legal support and resources for all market participants.
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