Coinbase Launches $6 Million Fund to Support NFT Projects
Coinbase’s advocacy group, Stand With Crypto, has introduced the Creator Legal Defense Fund to assist NFT projects.
Announced on September 13 via X (formerly Twitter), the $6 million fund is supported by venture capital firm a16z and the NFT marketplace OpenSea.
The fund was created in response to heightened regulatory pressures, including a Wells notice recently issued to OpenSea by the SEC. Stand With Crypto emphasized the importance of defending the crypto sector and allowing creators to contest what they see as improper SEC actions.
The initiative is backed by prominent law firms such as Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP, which will provide essential legal support for blockchain and NFT projects. a16z contributed $1 million to the fund, while OpenSea provided $5 million.
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The SEC’s aggressive stance, often criticized by the crypto community and US lawmakers, includes actions against NFT issuers and major crypto platforms like Coinbase, Binance, and Kraken. The SEC argues that crypto investors should have protections equivalent to those in traditional finance.
Coinbase, through its Stand With Crypto initiative and support for Fairshake—a political action committee advocating for the crypto industry—has demonstrated its commitment to promoting favorable regulations and protecting crypto investors.
This development comes amid a downturn in the NFT sector, with recent reports indicating that 96% of NFT projects are inactive. Issues such as rug pulls and wash trading have diminished trust in NFTs, and additional regulatory pressures could further impact the market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
