coinspress.com
Yuga Labs has announced a significant legal win, revealing that the U.S. Securities and Exchange Commission (SEC) has officially wrapped up its years-long investigation into the company.
The SEC’s decision to close the probe has been hailed as a major victory for the NFT space, with Yuga Labs emphasizing that the case’s closure reinforces their stance that NFTs should not be categorized as securities.
This investigation, which was initially launched in 2022, aimed to examine whether certain NFTs produced by Yuga Labs could be considered securities, similar to stocks or bonds, under U.S. law. The SEC’s focus on Yuga Labs was part of a larger investigation into NFTs and their regulatory status, particularly exploring whether fractionalized NFTs and other similar assets should fall under securities regulations.
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Yuga Labs, known for creating high-profile NFT collections such as the Bored Ape Yacht Club and CryptoPunks, faced intense scrutiny during this period. Despite the closure of the probe, Yuga Labs’ flagship Bored Ape collection has seen significant depreciation since its peak, with floor prices dropping dramatically from their highs in 2022.
The SEC’s closure of the investigation into Yuga Labs is part of a broader shift in regulatory approaches toward the crypto and NFT industries. In recent months, the SEC has eased its stance, with investigations into platforms like OpenSea and crypto exchanges such as Kraken also being closed. This more lenient approach follows changes in the SEC’s leadership and reflects a shift away from the aggressive regulatory tactics seen under former Chair Gary Gensler.