Yuga Labs Closes SEC Probe Into Bored Ape Yacht Club (BAYC) NFT Venture and ApeCoin (APE)

The US Securities and Exchange Commission (SEC) closed down its probe against Yuga Labs, owner of Bored Ape Yacht Club (BAYC) non-fungible token (NFT) venture and ApeCoin (APE).

The US Securities and Exchange Commission (SEC) has closed its probe against Yuga Labs, the company behind Bored Ape Yacht Club (BAYC) non-fungible token venture and ApeCoin (APE).

The SEC will not pursue any enforcement and is closing the investigation, which began in October 2022.

Yuga Labs confirmed the ruling, branding it a resounding win for the NFT space and digital creators. The company said the ruling supports the fact that NFTs are not securities, an issue that has been hotly debated in regulatory and legal circles for years.

“We are pleased to announce that the SEC has closed its investigation of Yuga Labs without any action. From the outset, Yuga cooperated fully with the SEC’s inquiry into the company’s NFT sales and ApeCoin distribution,” a Yuga Labs spokesperson said.

“After a comprehensive review, the SEC has determined not to pursue any enforcement action. This decision by the SEC is a resounding win not only for Yuga Labs but also for the broader Web3 community.”

The SEC had been investigating whether the sale of Yuga Labs’ NFTs and the manner in which ApeCoin was distributed contravened securities laws.

The probe was part of a series of regulatory actions on digital assets during former SEC Chair Gary Gensler’s time in office, encompassing NFT projects, fractionalized assets, and token distributions.

Regulators applied the Howey Test, used to determine if an asset should be classified as a security. If Yuga Labs’ NFTs or ApeCoin had failed this test, the company could have faced harsh regulatory sanctions and substantial fines.

However, the SEC has now decided not to proceed further with the case.

“We are grateful for the diligent and efficient manner in which the SEC conducted its investigation,” the spokesperson added.

The Yuga Labs case settlement is not unique. In recent months, the Securities and Exchange Commission (SEC) has closed several cryptocurrency-related investigations without taking any enforcement action.

Cases against the cryptocurrency exchange, exchange-linked derivatives platform and two institutions have now been dropped.

The agency has also reached settlements with the cryptocurrency exchange, the crypto derivatives trading platform and the blockchain technology firm.

The SEC has also closed its probes into the cryptocurrency exchange, the crypto wallet and browser, and the NFT marketplace.

The agency has even settled high-profile cases with Coinbase and Kraken, suggesting a possible shift in the regulatory approach to digital assets.

Apecoin is now trading at $0.5382, down 12.74%. APE fell by 1.07% in the last 24 hours.