The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, the company behind the popular Bored Apes Yacht Club (NFT) collection.

SEC Drops Investigation, No Enforcement Action Taken

Yuga Labs confirmed the news in a recent post, calling it a “huge win” for the NFT industry and creators. The company emphasized that NFTs are not securities.

After 3+ years, the SEC has officially closed its investigation into Yuga Labs. This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities.

Background of the Investigation

The SEC launched its probe into Yuga Labs in October 2022 to determine whether its NFT collections and ApeCoin (a token linked to BAYC) should be classified as securities under the Howey Test. The inquiry was part of a larger campaign against NFTs led by former SEC Chair Gary Gensler.

Regulatory Win for Yuga Labs and the NFT Industry

The SEC’s decision to close the case without filing any charges is viewed as a major regulatory win for Yuga Labs and the larger NFT industry. This decision coincides with the agency’s recent settlements with cryptocurrency companies and the conclusion of investigations into other major players in the industry.

Tips for NFT investors and creators:

  • Stay informed about regulatory updates and changes in the NFT industry.
  • Understand the Howey Test and its implications for NFTs and other digital assets.
  • Monitor the SEC’s roundtables and public discussions on digital asset regulation.

SEC’s Upcoming Roundtables on Digital Asset Regulation

The SEC’s Crypto Task Force will be holding a series of roundtables for the public, starting with “How We Got Here and How We Get Out – Defining Security Status” on March 21. These talks aim to establish more precise rules pertaining to digital assets and signal the agency’s changing stance on the industry.

Stay up-to-date with the latest news on NFTs, cryptocurrencies, and finance on Global Crypto News.

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