The firm behind the Bored Ape Yacht Club (BAYC) NFTs, Yuga Labs, is rejoicing after achieving a notable legal victory. Without taking any enforcement actions, the US Securities and Exchange Commission (SEC) has officially wrapped up its investigation into the organization.
This resolution concludes an inquiry that spanned over three years and examined if Yuga Labs’ NFT transactions and its ApeCoin (APE) token should be recognized as securities.
The SEC Investigation And Its Aim
The SEC initiated its investigation into Yuga Labs in October 2022. At that moment, regulators were assessing whether BAYC NFTs and ApeCoin fell under federal securities legislation. The investigation was part of a wider initiative to ascertain how digital assets ought to be governed in the US.
Throughout the inquiry, Yuga Labs asserted that NFTs are not securities. On March 3, 2025, the company disclosed on X (previously known as Twitter) that the SEC had officially closed its case, referring to it as “a major triumph for NFTs and all creators advancing our ecosystem.”
After 3+ years, the SEC has officially concluded its investigation into Yuga Labs.
This represents a significant win for NFTs and all creators advancing our ecosystem. NFTs are not securities.
— Yuga Labs (@yugalabs) March 3, 2025
A Lengthy Wait For Clarity
Yuga Labs operated in the shadow of the SEC’s investigation for more than three years. The NFT sector was fraught with tension due to the ambiguities surrounding potential regulatory actions. Many participants in the industry feared that a negative outcome for Yuga Labs could lead to stricter regulations for other NFT projects.
With the case now dismissed, some interpret this as an indication that regulators may be reevaluating their stance on NFTs. Others think this might merely be one of several steps before the SEC fully decides on its approach towards digital collectibles.
The NFT Market’s Response
The announcement was met with enthusiasm from the NFT community. Supporters of Yuga Labs and key figures in the industry celebrated the SEC’s resolution as a sign that NFTs might not undergo the same regulatory examination as certain cryptocurrencies.
However, it remains uncertain what action the SEC will take regarding other NFT projects in the future. While this investigation has concluded, it doesn’t guarantee that similar cases won’t arise later on. For the moment, Yuga Labs has emerged victorious.
Implications For Crypto Regulation
The SEC’s choice to halt its investigation without imposing charges may influence how regulators perceive NFTs moving forward. Although this does not set a legal precedent, it indicates that the agency may be willing to differentiate between various types of digital assets.
Some analysts speculate this could mark a pivotal moment, while others caution that clear regulations may still be a long way off. Regardless, the conclusion of this inquiry is advantageous for Yuga Labs and the NFT industry as a whole.
Featured image from Gemini Imagen, chart from TradingView