Key Points:

• Coinbase's Stand With Crypto launched a $6 million fund backed by a16z and OpenSea to support NFT projects against legal challenges.
• The fund was created after increased regulatory pressure from the SEC, such as a Wells notice against OpenSea for the alleged sale of unregistered securities.

Stand With Crypto, a political advocacy group backed by Coinbase, has launched a $6 million legal defence fund for NFT creators.

Read more: SEC Coinbase Lawsuit Continues With Court Approvals for Exchange

Stand With Crypto Launches $6 Million Legal Defense Fund

The Creator Legal Defense Fund is backed by venture capital firm a16z and NFT marketplace OpenSea, as well as several top law firms, including Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP.

The fund's launch comes with increased regulatory oversight into the crypto space, spearheaded by the U.S. Securities and Exchange Commission. Last August, the SEC issued a Wells notice to OpenSea on the sale of unregistered securities - a prelude to most of the agency's legal actions. Stand With Crypto said such protection was needed in the face of growing challenges.

New Fund Aims to Protect NFT Artists and Developers from Legal Challenges

Besides providing legal protection, the fund will help artists ensure that their NFT projects remain within the confines of the existing law. The CEO of OpenSea went ahead to say that the fund would go on to serve the purpose of providing legal resources not only to creators but also to developers operating in hostile legal environments.

The legal defense against the charges is part of a broader regulatory squeeze on the cryptocurrency sector, with the SEC having pursued enforcement actions against major cryptocurrency exchanges including Coinbase, Binance, and Kraken over alleged securities law violations involving fungible tokens-similar to Solana's native token.

With Stand With Crypto, Coinbase is positioning itself as one of the most outspoken voices defending the crypto community. The exchange has donated millions to support crypto-related causes through a political action committee called Fairshake; venture firm a16z is also a major contributor.