Yuga Labs, a leading player in the NFT space, has announced that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the company.
The firm celebrated the closure on social media, calling it a significant victory for both NFTs and creators pushing the digital ecosystem forward. Yuga Labs emphasized that NFTs are not securities, reinforcing their stance in the ongoing regulatory debate.
The SEC initially launched its probe in 2022 to assess whether certain NFTs offered by Yuga Labs, such as those from its Bored Ape Yacht Club and Mutant Ape Yacht Club collections, resembled traditional securities. This investigation was part of a broader initiative to examine the NFT market, including fractional NFTs and their potential classification as securities. However, the inquiry, which began under former SEC Chair Gary Gensler, has now been put to rest.
During the probe’s duration, Yuga Labs continued to make waves in the NFT market, and its Bored Ape collection saw a slight increase in value following the announcement of the investigation’s closure. Despite this, the value of Yuga Labs’ flagship NFT collection is still down significantly from its peak in 2022, with current floor prices showing a 90% decrease compared to their highest points. Other assets tied to the company, such as Mutant Ape NFTs and ApeCoin, have also experienced dramatic declines.
This shift in the SEC’s stance reflects a broader trend of the agency loosening its grip on the crypto sector under the current administration. This follows recent decisions by the SEC, including the closure of investigations into NFT marketplace OpenSea and the dismissal of lawsuits against major crypto exchanges like Coinbase and Kraken. As the regulatory environment evolves, the future of NFTs and digital assets remains uncertain, but for now, Yuga Labs can celebrate a significant legal win.
In a bold move to reshape the future of ApeCoin, Yuga Labs has introduced a proposal that would dissolve the existing ApeCoin DAO and replace it with a streamlined management body called ApeCo.
Circle’s arrival on the New York Stock Exchange sent shockwaves through the market, and Cathie Wood’s ARK Invest wasted no time jumping in.
WazirX’s bid to restructure and compensate victims of a $230 million hack has been rejected by the Singapore High Court, putting the exchange’s recovery roadmap in limbo.
Fundstrat’s Tom Lee believes that lingering caution in the stock market could actually be setting the stage for another bullish breakout.