SEC Probes Yuga Labs

Yuga Labs, the creator of the Bored Ape Yacht Club NFT collection, confirms that SEC is probing into them, over whether sales of their digital assets violate federal law. An unnamed source mentioned that the issue is whether some of Yuga’s non-fungible tokens are closer to stocks and thus should follow the same disclosure rules. SEC is also looking into how the ApeCoins, the Ethereum-based governance and utility tokens used within the APE ecosystem, were distributed. More here.

The key question, some have suggested, is whether NFTs are securities. A spokesman from Yuga Labs shared that, as a leader in this space, they are fully committed to cooperating with the SEC, as policymakers and regulators learn more about the novel world of web3, and seek to define and shape the burgeoning ecosystem.

Meanwhile a little fun on Twitter as fudbae.eth tweets: "I’m a practicing lawyer for 20+ years. Here’s why the SEC Probe against BAYC-Creator Yuga Labs for unregistered offerings isn’t a big deal 🧵👇." Turns out fudbae.eth is barely 20 years old and was simply farming for engagement.