On September 13, Stand With Crypto, a political advocacy group led by Coinbase, announced the creation of a new legal defense fund for non-fungible token (NFT) projects. The fund, named the Creator Legal Defense Fund, has been established with an initial capital of $6 million.
The fund is backed by several key players in the cryptocurrency industry. Some of the leading investors include venture capital firm a16z and NFT marketplace OpenSea. In addition, major law firms, including Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP, are engaged in the initiative.
This fund has been launched at a time when the cryptocurrency industry is facing rising regulatory challenges in countries such as the United States, where the SEC has ramped up scrutiny of the industry. In August last year, the SEC sent a Wells notice to OpenSea concerning selling unregistered securities and the possibility of legal action. Because of these regulatory headwinds, the Stand With Crypto has been insistent on having such a fund.
Creator Legal Defense Fund Aims to Ensure NFT Compliance Amid Legal Changes
The Creator Legal Defense Fund is an organization that seeks to offer legal defense to NFT artists and developers due to the ever-changing legal structures. For the case of legal issues, the fund will be available to guarantee compliance with the existing legal frameworks and to respond to legal battles. OpenSea’s CEO has noted that the fund will benefit creators and developers who work in unfavorable legal environments.
This act is a few of the various steps that have been taken by Coinbase and other supporters in an attempt to lobby on behalf of the cryptocurrency sector. Coinbase has been very active in the defense of the industry and has spent millions using its political action committee, Fairshake. California-based venture firm a16z has also been a major funder of the PAC.
Stand With Crypto, which gives U.S. federal election candidates a score depending on their positions on policies related to cryptocurrency, has a high score for Republican presidential candidate Donald Trump. In fact, the PAC has not awarded Democratic presidential candidate Kamala Harris any rating. As reported by the campaign finance tracking website Open Secrets, Fairshake has expended roughly $93 million to shape the 2024 election.
Source: https://www.livebitcoinnews.com/stand-with-crypto-launches-6-million-legal-defense-fund-for-nft-projects/