Coinbase advocates for NFT startups! a16z, OpenSea pledge investment

In the last cycle, the largest NFT marketplace OpenSea has not only faced competition from similar platforms like MagicEden and Blur for market share, but also a securities investigation by the SEC. This indicates that the SEC believes that some NFTs on OpenSea may be classified as securities and therefore subject to investigation. In response to the SEC's actions, OpenSea CEO Devin Finzer announced that OpenSea will allocate $5 million to defend creators. Yesterday, advocacy group Stand with Crypto, led by CoinBase, announced the establishment of a fund to defend creators, with contributions from venture capital firm a16z and OpenSea.

OpenSea CEO Responds to SEC Securities Investigation, Allocates $5 Million to Protect NFT Creators

OpenSea Responds to SEC Wells Notice: Allocates $5 Million to Defend Creators

Back on August 28 this year, OpenSea CEO Devin Finzer stated that the SEC had issued a Wells notice to OpenSea, expressing concern that the SEC's actions would stifle innovation and impact artists. OpenSea announced that it would allocate $5 million to assist NFT creators and developers who may receive similar notices from the SEC in paying legal fees.

As early as 2022, the SEC had investigated whether Yuga Labs' NFT projects, Bored Ape Yacht Club and Ape Coin, constituted securities. However, it seems that OpenSea aims to help creators who are relatively independent and lack the resources to defend themselves.

BNN Bloomberg: SEC Investigating Yuga Labs, Bored Ape Yacht Club NFTs, ApeCoin for Securities

OpenSea, a16z Invest $6 Million to Defend NFT Creators

Yesterday, the initiative Stand with Crypto, led by Coinbase, announced on Twitter that they will establish a legal defense fund to protect creators from misleading accusations by the SEC. According to information on the Stand with Crypto website, the fund is supported by law firms such as Fenwick & West LLP, Goodwin Procter LLP, and Latham & Watkins LLP.

Devin Finzer also stated that OpenSea commits to providing $5 million to help NFT artists and developers who receive SEC Wells notices cover legal expenses. He likened this joint action of the three major industry giants to "a rising tide lifts all boats."

Miles Jennings, legal counsel and decentralized lead at a16z, also announced this news on Twitter, stating that a16z will donate $1 million and collaborate with top law firms to provide legal services and advice to artists and creators facing SEC investigations or simply looking to ensure their NFT projects operate in a legal and compliant manner.