Get 125% / $2,500 on 1st deposit!
New players only. Exclusive Welcome Bonus of up to $2,500
The inquiry into Yuga Labs, the firm that created the well-known Bored Ape Yacht Club (BAYC) NFT collection, has been formally concluded by the U.S. Securities and Exchange Commission (SEC). Yuga Labs will not be subject to fines or legal repercussions because the regulator has chosen not to pursue enforcement action.
The company announced the announcement on X on March 3 and described the result as a “huge win” for the digital asset market and NFT developers. Yuga Labs also reiterated in their statement that “NFTs are not securities.”
The SEC began examining Yuga Labs in October 2022, aiming to determine whether its NFT collections and ApeCoin (APE) qualified as securities under the Howey Test. This investigation was part of a broader regulatory push under former SEC Chair Gary Gensler, who also scrutinized NFT marketplaces and fractionalized NFTs.
For Yuga Labs and the wider NFT sector, the SEC’s decision to drop the case without charges is seen as a significant regulatory victory.
The closure of this investigation aligns with the SEC’s recent trend of dropping cases against crypto firms. The agency has settled legal disputes with Coinbase and Kraken and concluded investigations into OpenSea, Robinhood, Gemini, and Uniswap Labs.
This shift comes as the SEC’s Crypto Task Force prepares for a series of public roundtables titled “Spring Sprint Toward Crypto Clarity.” These discussions aim to refine regulatory frameworks for digital assets.
The first session, “How We Got Here and How We Get Out – Defining Security Status,” is scheduled for March 21 from 17:00 to 21:00 UTC. Experts and industry leaders will discuss key crypto regulation issues, providing insight into how the SEC’s stance may continue evolving.