The political advocacy group spearheaded by Coinbase, Stand With Crypto, has set up a legal defense fund specifically for NFT projects. The Creator Legal Defense Fund comes with $6 million backing from venture capital firm a16z and NFT marketplace OpenSea.
Stand With Crypto’s website mentions that major law firms like Goodwin Procter LLP, Fenwick & West LLP, and Latham & Watkins LLP support it. The company emphasizes its commitment to protecting key aspects of the crypto community, stating that this initiative allows creators to defend themselves against unjust actions from the SEC.
The cryptocurrency industry has faced a lot of regulatory action in the U.S. Recently, in August, the Securities and Exchange Commission (SEC) issued a Wells notice to OpenSea. This notice, which usually comes before a lawsuit, accuses the NFT marketplace of selling unregistered securities.
Coinbase and A16z back Fairshake
NFTs are digital certificates that prove ownership of unique items like art, music, or videos. People usually buy and sell them more for their collectible value than as traditional investments. The SEC has taken legal action against cryptocurrency exchanges like Binance, Coinbase, and Kraken. They claim these platforms broke securities laws with their handling of fungible tokens, including Solana’s native token.
Coinbase has been a prominent supporter of cryptocurrency. In 2023, they launched the Stand With Crypto initiative and contributed tens of millions of dollars to Fairshake, a political action committee focused on the crypto industry. A16z was also one of the major contributors to this PAC.
Stand With Crypto reviews US federal election candidates from ‘A’ to ‘F’ based on their support for crypto-friendly policies. They’ve given Republican presidential candidate Donald Trump an ‘A’ rating, but they haven’t yet assigned a rating to Democratic presidential candidate Kamala Harris.
In August, Harris was nominated for the presidential race after President Joe Biden withdrew, citing health concerns. Campaign finance watchdog Open Secrets reports that Fairshake spent around $93 million in the year leading up to August to sway the 2024 election cycle.
