Yuga Labs Announces SEC Has Closed Its Investigation into the Company

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.

Yuga Labs, a prominent name in the NFT sphere, has announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the company.

The firm acknowledged the development in a recent social media post.

"We're thrilled to share that the SEC has closed its investigation into Yuga Labs. This is a huge win for NFTs, creators, and the entire digital ecosystem that we're passionate about pushing forward," Yuga Labs said.

"A key focus of the investigation was the company's stance that NFTs are not securities, an opinion that Yuga Labs has consistently maintained throughout the inquiry."

The SEC had launched its probe in 2022 to examine whether certain NFTs sold by Yuga Labs, such as those from its Bored Ape Yacht Club and Mutant Ape Yacht Club collections, could be classified as traditional securities.

This investigation was part of a broader effort by the SEC to scrutinize the NFT market, including fractional NFTs and their potential classification as securities. The inquiry, which commenced under former SEC Chair Gary Gensler, has now been terminated.

The SEC probe began as Yuga Labs was making significant moves in the NFT market. Its Bored Ape collection saw a slight increase in value following the announcement of the investigation closure.

However, the value of Yuga Labs' flagship NFT collection is still down drastically 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 seems to reflect a broader administrative priority on clamping down on the crypto sector, at least in terms of the agency's stance. It follows recent decisions by the SEC, such as closing its probe into NFT marketplace OpenSea and dropping lawsuits against major crypto exchanges Coinbase and Kraken.

As the regulatory landscape evolves, the long-term implications for NFTs and digital assets remain to be seen, but for now, Yuga Labs can celebrate a substantial legal victory.