The US Securities and Exchange Commission (SEC) has closed its investigation into Yuga Labs, the company behind the popular Bored Ape Yacht Club (BAYC). This move marks the latest in a series of investigations the SEC has ended, following previous closures into crypto firms like Binance, Uniswap, Robinhood, Gemini, and others.
SEC’s Tussle With Yuga Labs Ends
Yuga Labs confirmed the news today via a post on X (formerly Twitter), stating, “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.”
The investigation into Yuga Labs began in October 2022, focusing on whether certain NFTs, including those from the Bored Ape Yacht Club and related assets, should be classified as securities under federal law. The SEC had been examining whether Yuga Labs marketed its NFTs as investment contracts based on the Howey Test, which determines whether a transaction qualifies as an investment contract. Additionally, the SEC scrutinized the sale of ApeCoin (APE), a cryptocurrency linked to the BAYC ecosystem, to determine if it fell under securities regulations.
As noted earlier, the SEC has also discontinued investigations into other major companies in the crypto space, including Robinhood, Gemini, Uniswap Labs, ConsenSys, and OpenSea. The SEC has reached settlements with Coinbase and Kraken and is reportedly nearing a resolution with TRON founder Justin Sun. However, the SEC’s lawsuit against Ripple remains active and ongoing.
Also Read: US SEC Declares Memecoins Are Not Securities
