Yuga Labs Dodges SEC Scrutiny – What Does This Mean for the NFT Market?

Jakarta, Pintu News – The United States Securities and Exchange Commission (SEC) recently ended their investigation into Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) NFT and ApeCoin.

The closure marks the end of a more than three-year investigation, which questioned whether the digital assets violated federal securities laws.

This decision was greeted with relief by NFT creators, who saw it as a major victory for the industry.

Legal Implications of the SEC Decision

The SEC’s investigation into Yuga Labs focuses on whether NFTs and the distribution of ApeCoin can be classified as securities under US law. The SEC used the Howey Test, a legal framework from a 1946 Supreme Court case, to assess this.

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The decision to close the investigation without further action indicates that NFTs, in this case, are not considered securities. This decision has significant implications for the NFT market as a whole.

By clarifying the legal status of NFTs, Yuga Labs and other NFT creators can now be more confident in developing and marketing their products without the same legal concerns that previously haunted the industry.

Impact on NFT Valuation and Market

Since its founding in 2021, Yuga Labs has reached a valuation of $4 billion, with $450 million raised by 2022.

Their BAYC collection has generated billions of dollars in trading volume, affirming their position as a major player in the NFT space. This SEC decision is expected to further strengthen Yuga Labs’ market position.

Although ApeCoin dropped 16% in the last 24 hours (4/3/25) according to data from Coingecko, no immediate price reaction was seen from the close of the investigation.

This suggests that the market may have anticipated a positive outcome from the investigation or that other factors were more dominant in determining ApeCoin’s price.

Reaction and Future Outlook

Read also: Good News for the NFT Market: SEC Officially Ends Investigation Against OpenSea!

The closure of this investigation was positively welcomed by the NFT community. Many see this as a validation of the NFT business model and a push for further innovation in the digital ecosystem. It could also encourage more investors to enter the NFT market, seeing it as safer from legal risks.

However, while this decision favors Yuga Labs and the NFT industry, it is important to remember that regulations in the crypto and NFT sectors are still subject to change. Stakeholders in the industry should remain vigilant and adaptive to regulations that may evolve.

All in all, the closure of the SEC’s investigation into Yuga Labs is not only a victory for the company, but also a positive indication for the entire NFT industry.

This decision paves the way for further growth and innovation in the digital ecosystem, while providing greater legal clarity for creators and investors.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. Yuga Labs: SEC Closed Investigation of NFT Platform. Accessed on March 5, 2025
• Crypto Briefing. SEC Closes Investigation Into Yuga Labs. Accessed on March 5, 2025