The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, the company behind major NFT collections such as Bored Ape Yacht Club and Mutant Ape Yacht Club.
The decision marks the end of a probe that began in 2022, examining whether the firm’s NFT offerings and ApeCoin token distribution violated federal securities laws.
NFTs Are Not Securities, Declares Yuga Labs After SEC Probe
Yuga Labs announced the closure of the investigation on social media, calling it a significant victory for the NFT sector. The company also reiterated its stance 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,” the company stated on X.
The SEC’s inquiry was part of a broader effort under former Chair Gary Gensler to determine whether certain NFTs, including fractionalized tokens, should be classified as securities. The agency had been scrutinizing various NFT marketplaces and creators as part of its regulatory oversight.
Bored Ape Creator Cleared by SEC After 3-Year Investigation
At its market peak, Yuga Labs was a dominant force in the NFT space, with its collections fetching high prices and attracting high-profile buyers, including celebrities.
The company also acquired the rights to CryptoPunks, one of the earliest and most valuable NFT projects. However, the NFT market has seen a sharp decline in value.
The floor price of Bored Ape NFTs, which once soared to 153.7 ETH during the last crypto bull run, has dropped by approximately 91%, according to CoinGecko data.
The SEC’s decision to close the Yuga Labs investigation follows similar moves regarding other crypto-related entities. Last month, NFT marketplace OpenSea confirmed the SEC had ended its probe into its operations.
Meanwhile, the agency’s legal battle with Ripple remains ongoing. The SEC has also withdrawn its enforcement cases against cryptocurrency exchanges, including Coinbase, Robinhood Markets’ crypto division, Gemini, and Uniswap.
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