Yuga Labs Closes SEC Investigation, Maintains NFTs "Are Not Securities"

The U.S. Securities and Exchange Commission has closed its investigation into prominent NFT company Yuga Labs, the firm said.

The U.S. Securities and Exchange Commission has closed its probe into prominent NFT company Yuga Labs, the firm said.

“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,” Yuga Labs wrote on X. “NFTs are not securities.”

In recent days, the SEC has withdrawn its investigations into a number of prominent crypto-related companies, including Robinhood (HOOD), Gemini, UniSwap Labs, Consensys-owned MetaMask and OpenSea. The SEC has also settled cases with Coinbase (NASDAQ:COIN) and Kraken and is moving towards settling its case against TRON's Justin Sun.

“The Cyber and Emerging Technologies Unit will root out those seeking to misuse innovation to harm investors, including fraud involving blockchain technology and crypto assets,” the SEC said in its statement announcing the dismissal of its lawsuit against Coinbase.

The SEC is known to have originated its probe into Yuga Labs in October 2022.

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” Yuga Labs told Blockworks at the time.

The SEC’s long-standing lawsuit against Ripple (NYSE:PYPL) remains in active litigation. President Donald Trump recently named XRP as one of the coins to be included in his proposed Crypto Strategic Reserve, which would also feature Cardano, Solana, Bitcoin and Ethereum.

The price of ApeCoin (APE) is down 16% in the past 24 hours amid a broader market pullback, according to Block's ApeCoin Price Page.