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SEC Concludes 3-Year Long Investigation Into Yuga Labs

SEC Concludes 3-Year Long Investigation Into Yuga Labs

CryptotaleCryptotale2025/03/04 01:37
By:Cryptotale Staff
SEC Concludes 3-Year Long Investigation Into Yuga Labs image 0
  • The U.S. SEC has officially closed its 3-year long investigation into Yuga Labs. 
  • Yuga Labs posted that this is a huge win for NFTs and that NFTs are not securities.
  • The SEC has dropped numerous cases into major crypto firms like Coinbase, Uniswap, etc. 

The U.S Securities and Exchange Commission has concluded its investigation into Yuga Labs,  whether the company’s Bored Ape Yacht Club (BAYC) NFTs have violated the federal securities laws. SEC has not issued any charges against the firm. Yuga Labs confirmed this closure on an X post on March 3, 2025. 

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.

— Yuga Labs (@yugalabs) March 3, 2025

Yuga Labs was first founded in 2021, creating some of the most high-end and expensive NFT collections during the market’s peak. They quickly reached a $4 billion valuation after raising $450 million in funding by 2022. The company’s BAYC collection has generated billions in trading volume, making it a strong player in the NFT marketplace. Further Yuga Labs’ ecosystem grew with the addition of new projects like Mutant Ape Yacht Club and CryptoPunks. 

Due to this, the Yuga Labs has been under scrutiny. In October 2022, the SEC investigated Yuga Labs to examine its NFT offerings. Under Former SEC Chair Gary Gensler, the probe began determining whether these digital assets qualify as securities under U.S. law through the Howey test. This examination was part of the SEC’s general investigation into NFTs, NFT creators, and the marketplace.

SEC Easing Regulations 

Recently, the SEC has dropped its investigations into several crypto companies, including Gemini, Coinbase, UniSwap, Robinhood, and an NFT marketplace OpenSea. In the same way, the SEC has also closed its crypto-related enforcement actions against popular crypto firm Kraken. These actions align with the growing leniency in the crypto industry under the Trump administration.

The major reason behind this leniency is the new crypto task force, which was formed by the Acting SEC Chair Mark Uyeda, and led by Commissioner, Hester Peirce. This crypto task force was created with the aim to develop a transparent and regulatory framework for digital assets, seeking to address the SEC’s prior enforcement approach. 

Related: SEC Rules Meme Coins Are Not Securities Under Federal Law

However, it is expected that SEC’s lawsuit with Ripple will also find its resolution, since Trump has named XRP as one of the coins to be included in his proposed Crypto Strategic Reserve. In any case, this closure marks a significant win for the NFT sector as it provides clarity on the legal status of NFTs and the deployment of a more crypto-friendly environment in the crypto industry. 

The post SEC Concludes 3-Year Long Investigation Into Yuga Labs appeared first on Cryptotale.

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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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