SEC drops Yuga Labs investigation into BAYC NFTs and ApeCoin

The SEC has closed its investigation into Yuga Labs, ending a probe that examined whether the company’s Bored Ape Yacht Club (BAYC) NFTs and ApeCoin violated federal securities laws.

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

The investigation, which made headlines in October 2022, focused on Yuga Labs’ $NFT offerings and ApeCoin distribution.

The SEC sought to determine if these digital assets should be classified as securities under US law using the Howey Test, a legal framework from a 1946 Supreme Court case.

Yuga Labs, founded in 2021, 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 prominent player in the $NFT space.

ApeCoin, which is down 16% over the past 24 hours according to Coingecko data, showed no immediate price reaction to the investigation’s closure.