The SEC Concludes Investigation into Yuga Labs: A Significant Milestone for the NFT Sector
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, the company behind the iconic Bored Apes Yacht Club NFT collection. This decision indicates that the regulator will not pursue any enforcement actions or charges against the firm.
Yuga Labs described this outcome as a “huge win” for the NFT ecosystem and its creators, reaffirming their position that “NFTs are not securities.” The investigation, which began in October 2022, aimed to determine if Yuga’s NFT collections and the associated ApeCoin (APE) should fall under the securities classification as defined by the Howey Test. This probe was part of a broader initiative targeting the NFT market led by previous SEC Chair Gary Gensler.
This conclusion is seen as a significant regulatory victory not only for Yuga Labs but also for the wider NFT community. The SEC has recently curtailed additional investigations into cryptocurrency firms, further indicating a potential shift in its regulatory stance. Other investigations into various companies, including Coinbase and Kraken, have also been settled recently.
Market analysts anticipate that the SEC’s decision is likely to positively influence the floor price of Bored Ape NFTs, which trades around 13.75 Ethereum (ETH), a steep decline from its peak of 153.7 ETH in May 2022.
In a related development, the SEC’s Crypto Task Force has announced a series of public roundtables dubbed “Spring Sprint Toward Crypto Clarity.” These discussions aim to clarify regulations surrounding digital assets. The first event, titled “How We Got Here and How We Get Out – Defining Security Status,” is scheduled for March 21, promising to address critical issues in crypto regulation and indicating a potential shift in the agency’s approach towards digital currencies.
