Yuga Labs, the Company Behind the Bored Ape Yacht Club (BAYC) NFTs, Celebrates a Significant Court Win

Without pursuing any enforcement measures, the US Securities and Exchange Commission (SEC) has formally concluded its investigation into the company.

The company behind Bored Ape Yacht Club (BAYC) NFTs, Yuga Labs, is celebrating a significant court win. Without pursuing any further enforcement measures, the US Securities and Exchange Commission (SEC) has formally concluded its investigation into the company.

This decision brings an end to a probe that spanned more than three years and saw the regulator question whether Yuga Labs’ NFT sales and its ApeCoin (APE) token should be classified as securities.

The SEC Commences Probe Into Yuga Labs

The SEC's investigation into Yuga Labs began in October 2022. At the time, the agency was examining whether NFTs and cryptocurrencies, including those offered by Yuga Labs, fell afoul of federal securities laws. This inquiry was part of a broader effort to determine how digital assets should be regulated in the US.

Throughout the investigation, Yuga Labs maintained that its NFTs are not securities. Finally, on March 3, the company announced that the SEC had closed its case, stating that it was "a huge win for NFTs and all creators pushing our ecosystem forward."

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 maintains that NFTs are not securities and we're pleased to see the SEC close its investigation.

— Yuga Labs (@yugalabs) March 3, 2025

The SEC's investigation was closely watched by the crypto industry. Several legal experts weighed in on the matter, offering their predictions on how the case might unfold and what implications it could have for the broader crypto ecosystem.

Yuga Labs Faced A Long Shadow Of Regulatory Uncertainty

Yuga Labs' work has been done in the shadow of the SEC's probe for a considerable period. The NFT space was keeping a close eye on any developments, and there was tension in anticipation of possible regulatory action. Many industry participants were concerned that a decision against Yuga Labs might result in more stringent guidelines for other NFT initiatives.

Now that the case has been dropped, some view it as a sign that regulators might be rethinking their approach to NFTs. A broader perspective suggests that this could be one of many steps before the SEC fully determines how it wishes to handle digital collectibles.

How The NFT Market Reacted To The Closure

The news was met with positivity from the NFT community. Yuga Labs supporters and industry figures reacted to the SEC's decision, which they see as a favorable development.

This decision might also indicate that NFTs may not face the same regulatory scrutiny as some cryptocurrencies, which could have far-reaching implications for the future of the digital asset industry.

However, it's still not clear what the SEC will do with other NFT projects in the future. The investigation into this case is over, but that doesn't mean that similar ones won't happen again in the future. For now, Yuga Labs has come out on top.

What This Means For Crypto Regulation In The US

The SEC's decision to discontinue its investigation without filing charges may have an impact on how regulators view NFTs in the future. While this does not establish a legal precedent, it does suggest that the agency is willing to distinguish between different sorts of digital assets.

Some experts believe that this could be a turning point in the US crypto regulatory landscape, while others caution that it will be a long time before regulations are clear. No matter what, the end of this probe is good news for Yuga Labs and the NFT space as a whole.