Stand With Crypto, a political advocacy group led by Coinbase, launched a legal defense fund for non-fungible token (NFT) projects, according to a Sept. 13 post on the X platform.
Dubbed the Creator Legal Defense Fund, the $6 million fund is backed by venture capital firm a16z and NFT marketplace OpenSea. According to Stand With Crypto’s website, it is also backed by law firms, including Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP.
“With the SEC issuing OpenSea a Wells notice, as well as other attacks on artists and creators, it has become clear that those looking to build on blockchain technology will continue to face significant legal threats and challenges,” according to the website.
“Today, we raise our shield to protect a foundational part of the crypto community,” Stand With Crypto said. “Creatives can now stand up to misguided actions from the SEC.”
Stand With Crypto launched an NFT legal defense fund. Source: Stand With Crypto
Related: OpenSea marketplace receives Wells notice from the SEC
The cryptocurrency industry has been the target of numerous enforcement actions by United States regulators. In August, the Securities and Exchange Commission (SEC) served a Wells notice — a precursor to a lawsuit from the agency — to OpenSea alleging the NFT marketplace sold unregistered securities.
NFTs are tokenized proofs of ownership of a specific item, such as digital art, music, or videos. They are typically valued and traded as collectibles rather than conventional investment instruments.
The SEC has also brought actions against cryptocurrency exchanges Coinbase, Binance, and Kraken, alleging securities law violations related to fungible tokens, such as Solana’s native token, SOL.
“Investors in crypto assets offered or sold as securities should get the same protections as investors in other securities, even when they are traded using intermediaries,” the SEC said in an August statement.
Coinbase has emerged as an especially vocal crypto advocate. After launching…
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