Coinbase launches $6M fund to protect NFT Creators under SEC scrutiny

Coinbase has started a $6 million fund to help NFT creators with legal issues. This is part of a bigger effort called Stand With Crypto, which involves working with major groups like OpenSea and Andreessen Horowitz (a16z). 

The fund will help creators defend themselves against legal actions, especially from the SEC, which has been looking closely at the cryptocurrency and NFT markets.

“With the SEC issuing OpenSea a Wells notice, as well as other attacks on artists and creators, it has become clear that those looking to build on blockchain technology will continue to face significant legal threats and challenges,” Coinbase said. 

“If you’re an artist or creator facing legal challenges or simply need help navigating the unclear regulatory environment, we’re here to help.”

This fund shows the ongoing struggles between the crypto industry and regulators. Many creators are facing legal challenges as rules around NFTs change. With this fund, Coinbase and its partners want to give NFT creators more legal support so they can handle these issues better.

Coinbase started the Stand With Crypto project in 2023 because the crypto industry was facing more legal pressure. The goal of the project is to bring the crypto community together to push for laws that support crypto and stop actions that work against it.

In August 2023, Coinbase announced the Stand With Crypto Alliance, which quickly became popular. Over 52,000 people signed up on the first day.

The project has also created more than 160,000 Stand with Crypto Shield NFTs, raising about $215,000 for groups supporting crypto. An earlier petition also got over 188,000 signatures, showing strong community backing.

As the project grew, it expanded its efforts. In May 2024, Stand With Crypto launched a political action group to help its 450,000 members support pro-crypto candidates in the 2024 U.S. elections. So far, users have donated more than $86 million to help achieve these goals.