SEC drops Yuga Labs probe
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, a leading non-fungible token (NFT) company, concluding that its NFTs, including those from the Bored Ape Yacht Club (BAYC), 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," stated Yuga Labs, announcing this development on March 3.
The SEC's investigation, which began in late 2022 under former Chair Gary Gensler, aimed to determine if certain NFTs resembled traditional securities under U.S. law, using the Howey Test as a legal framework.
Yuga Labs is known for its highly successful NFT collections, including BAYC and Mutant Ape Yacht Club, and has acquired rights to CryptoPunks, another influential NFT collection.
This decision aligns with the SEC's recent easing of scrutiny on the crypto industry, following the closure of investigations into other prominent companies like OpenSea and the dismissal of lawsuits against Coinbase and Kraken.
The closure of the investigation has been welcomed by the NFT community as a significant victory, emphasising that NFTs are not classified as securities.
Despite this positive development, ApeCoin (CRYPTO:APE), associated with the BAYC ecosystem, showed no significant price change immediately following the announcement.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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