- a16z, OpenSea and Stand With Crypto have established a $6 million creator defense fund.
- OpenSea has committed $5 million, while a16z has contributed $1 million.
- The fund aims to bolster the NFT market, in light of the SEC’s recent Wells Notice issued against OpenSea.
Venture capital firm Andreessen Horowitz is partnering with the NFT marketplace OpenSea and the Coinbase-supported organization Stand With Crypto to establish a new fund focused on legal defense for the crypto creator ecosystem.
On Friday, a16z Crypto, Stand With Crypto, and OpenSea unveiled the Creator Legal Defense Fund with an initial allocation of $6 million. This fund intends to provide legal support for artists and creators, according to the information shared by the three entities.
“This partnership represents a pivotal moment in our goal to empower and safeguard the voices of artists and creators who depend on blockchain technology,” the organizations stated.
OpenSea commits $5 million
The launch of the Creator Legal Defense Fund comes just a fortnight after the US Securities and Exchange Commission (SEC) issued a Wells Notice against OpenSea, which is a prominent NFT marketplace. The SEC’s notice suggests that the regulator is contemplating legal action against OpenSea for potential securities violations.
In response to the SEC’s Wells Notice, OpenSea expressed its intention to “stand up and fight.” Co-founder and CEO Devin Finzer described the regulator’s stance as surprising, with OpenSea committing $5 million to a fund designed to protect NFT creators.
On September 13, the marketplace, alongside a16z and Stand With Crypto, introduced the creator defense fund. a16z disclosed its $1 million contribution while OpenSea pledged $5 million. The CEO of OpenSea remarked that the fund will provide legal guidance to both creators and developers.
We’re excited to launch the Creator Legal Defense Fund with @a16zcrypto and @standwithcrypto.
Every creator, regardless of size, should be able to innovate without fear. https://t.co/96wPpLTKjF
— OpenSea (@opensea) September 13, 2024
The fund will collaborate with legal professionals from several law firms, including Cooley LLP, Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP.
SEC’s crackdown on crypto
The SEC continues to face backlash from the crypto community and US lawmakers concerning its regulation by enforcement strategy regarding crypto assets.
On Thursday, the regulator announced a settlement with eToro, which includes a monetary penalty and a cease and desist order that will require the platform to delist all crypto tokens except Bitcoin, Ethereum, and Bitcoin Cash.
