- The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs
- No charges have been filed against the creators of the Bored Ape Yacht Club (BAYC) NFTs
- Yuga Labs has hailed this outcome as a significant victory for the NFT community
After more than two and a half years, the SEC has concluded its probe into Yuga Labs without pursuing any enforcement actions. This development has been celebrated by the company and is viewed as a positive signal for the broader NFT ecosystem. The decision is the latest by the new-look agency to abandon its regulation by enforcement approach.
No Charges After Two and a Half Years
The SEC initiated its investigation into Yuga Labs in October 2022, seeking to determine whether certain NFTs issued by the company could be classified as securities under federal law. The focus was on the Bored Ape Yacht Club (BAYC) NFT collection and the associated cryptocurrency, ApeCoin (APE), and the company said at the time that it was “committed to fully cooperating with any inquiries” in order to “partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem.”
The SEC aimed to assess if NFTs created by Yuga Labs were marketed in a manner that would categorize them as investment contracts, thereby subjecting them to securities regulations.
Yuga Labs Celebrates “Huge Win”
Upon the closure of the investigation, Yuga Labs expressed its satisfaction through a statement on X:
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 SEC’s decision not to file charges against Yuga Labs is perceived as a landmark moment for the NFT industry, providing a degree of regulatory clarity that many creators and investors have been seeking. By refraining from classifying NFTs like those of BAYC as securities, the SEC has set a precedent that could influence future regulatory approaches to digital collectibles.
