a16z, OpenSea and Stand With Crypto have launched a $6 million creator defense fund.
OpenSea has pledged $5 million and a16z $1 million.
The fund will support the NFT market, with this coming weeks after SEC issued a Wells Notice against OpenSea.
Venture capital firm Andreessen Horowitz is collaborating with NFT marketplace OpenSea and Coinbase-backed non-profit Stand With Crypto to launch a new fund aimed at legal defense for the crypto creator ecosystem.
On Friday, a16z Crypto, Stand With Crypto and OpenSea announced the launch of Creator Legal Defense Fund, with an initial $6 million funding. The fund targets legal protection for artists and creators, according to details the three platforms shared.
“This collaboration marks a significant milestone in our mission to empower and protect the voices of artists and creators who rely on blockchain technology,” the firms wrote.
OpenSea pledges $5 million
Creator Legal Defense Fund’s unveiling comes just two weeks after the US Securities and Exchange Commission (SEC) issued a Wells Notice against OpenSea – a leading NFT marketplace. SEC’s notice indicates the regulator is considering a lawsuit against the platform for securities violations.
Following the SEC’s Wells Notice, OpenSea issued a statement noting that it would “stand up and fight.” Co-founder and CEO Devin Finzer called the regulator’s approach shocking, with OpenSea saying it would dedicate $5 million to a fund aimed at protecting NFT creators.
On Sept. 13, the marketplace, together with a16z and Stand With Crypto unveiled the creator defense fund. a16z noted it would contribute $1 million while OpenSea pledged $5 million. OpenSea CEO commented that the fund will offer legal expertise to both creators and developers.
We’re honored to kick off the Creator Legal Defense Fund alongside @a16zcrypto and @standwithcrypto.
Every creator, big or small, should be able to innovate without fear. https://t.co/96wPpLTKjF
— OpenSea (@opensea) September 13, 2024
The fund will utilise legal experts from various law firms, including Cooley LLP, Fenwick & West LLP, Goodwin Procter LLP and Latham & Watkins LLP.
SEC and crypto crackdown
The SEC continues to attract criticism from across crypto and from US lawmakers over its regulation by enforcement approach to crypto.
On Thursday, the regulator announced a settlement with eToro. It included monetary penalty and a cease and desist order that will see the platform delist all crypto tokens except Bitcoin, Ethereum and Bitcoin Cash.
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