Yuga Labs Celebrates as SEC Closes Investigation

After more than three years, Yuga Labs has officially announced that the U.S. Securities and Exchange Commission (SEC) has dropped its investigation into the company. In a March 3 post on X (formerly Twitter), Yuga Labs declared this a major victory for the NFT space, stating: "NFTs are not securities."

A Huge Win for NFTs and Creators

The SEC originally launched its probe into Yuga Labs in October 2022, investigating whether certain NFTs (non-fungible tokens) should be classified as securities under U.S. law. This was part of a broader effort by the regulator to scrutinize the NFT industry, including creators and marketplaces, particularly around fractional NFTs.

Yuga Labs is best known for its high-profile NFT collections, including Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC). The company also acquired the iconic CryptoPunks collection, further cementing its dominance in the NFT space.

Market Reactions: Bored Ape Prices See a Small Bump

Following the announcement, the floor price of Bored Ape Yacht Club NFTs saw a slight uptick to 13.75 ETH (around $29,650), according to OpenSea data. However, the market remains significantly down from its all-time highs. Back in May 2022, the BAYC floor price peaked at 153.7 ETH, making the cheapest Bored Ape NFT worth approximately $430,300 at the time.

Similarly, Mutant Ape NFTs and ApeCoin (APE)—a token tied to Yuga Labs’ ecosystem—have also seen significant declines, with both dropping over 95% from their 2022 peaks. Meanwhile, CryptoPunks have also lost over 70% of their peak value.

SEC Softens Stance on Crypto and NFTs?

The closure of the SEC’s investigation into Yuga Labs follows a pattern of recent regulatory shifts. Just last month, OpenSea, a major NFT marketplace, also confirmed that the SEC had closed its investigation into its platform. Additionally, the regulator recently dropped a lawsuit against Coinbase, one of the leading crypto exchanges.

The SEC's recent actions suggest a potential easing of regulatory pressure on the broader crypto and NFT markets. However, industry experts believe there’s still a long way to go in achieving clarity and stability for digital assets in the U.S.

For Yuga Labs and the broader NFT community, this is a big moment. The SEC’s decision to abandon its investigation reinforces the stance that NFTs are not securities, providing some much-needed relief to creators and collectors alike.

While the NFT market continues to evolve, this news marks an important step forward for NFT adoption, regulatory clarity, and the future of digital collectibles.