a16z Crypto, OpenSea and Stand with Crypto startup creator hedge fund
a16z, OpenSea and Stand With Crypto have launched a $6 million Innovator Defense Fund.
OpenSea pledged $5 million and a16z $1 million.
The fund will support the NFT market, following the SEC's announcement of Wells on OpenSea in the coming weeks.
Venture capital firm Andreessen Horowitz is teaming up with NFT marketplace OpenSea and Coinbase-supported 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 an Innovator Legal Defense Fund, an initial $6 million fund. According to the three platforms shared, the funds are aimed at legal protection for artists and creators.
“This collaboration is a major milestone in our mission to empower and protect the voices of artists and creators who rely on blockchain technology,” the companies wrote.
OpenSea pledged $5 million.
The announcement of the creator's legal defense fund comes two weeks after the US Securities and Exchange Commission (SEC) issued a notice to Wales on OpenSea – a leading NFT marketplace. The SEC notice indicates that the regulator is investigating allegations of securities violations on the platform.
Following SEC Wells' announcement, Opensea issued a statement saying it would “stand up and fight back.” Co-founder and CEO Devin Finzer called the regulator's approach “shocking” and said that OpenSea will offer $5 million to protect NFT creators.
On September 13, the marketplace partnered with a16z and Stand With Crypto to launch the Innovator Defense Fund. a16z said it would contribute $1 million, while OpenSea said it would contribute $5 million. The CEO of OpenSea said the fund will provide legal expertise to inventors and developers.
Together with @a16zcrypto and @standwithcrypto we celebrate the launch of the Creators Legal Defense Fund.
Any creator, big or small, should be able to create without fear.
— OpenSea (@opensea) September 13, 2024
The fund employs lawyers from a variety of law firms, including Cooley LLP, Fenwick & West LLP, Goodwin Procter LLP and Latham & Watkins LLP.
SEC and crypto cracking
The SEC continues to draw criticism from across crypto and from US lawmakers over its approach to crypto enforcement.
On Thursday, the regulator announced an agreement with eToro. It includes a fine and a cease and desist order that sees the platform list all crypto tokens except Bitcoin, Ethereum and Bitcoin Cash.
