Yuga Labs, the powerhouse behind the Bored Ape Yacht Club (BAYC), announced on March 3 that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the company. The conclusion of this probe marks a significant victory for the NFT space and digital creators.
“After 3+ years, the SEC has officially closed its investigation into Yuga Labs,” the company stated in a post on X. “This is a huge win for NFTs and all creators pushing our ecosystem forward.” The firm also reaffirmed its long-held stance that “NFTs are not securities.”
After 3+ years, the SEC has officially closed its investigation into Yuga Labs.
— Yuga Labs (@yugalabs) March 3, 2025
This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities.
SEC’s Probe Into Yuga Labs and the NFT Industry
The SEC first launched its investigation into Yuga Labs in October 2022 amid growing scrutiny of the NFT sector. The regulator sought to determine whether certain NFTs functioned like traditional securities and should be subjected to federal regulations. The probe, initiated under former SEC Chair Gary Gensler, was part of a broader crackdown on NFTs, including fractionalized digital assets and marketplaces.
At its peak, Yuga Labs was a dominant force in the NFT market, producing some of the most valuable digital collectibles. The company not only spearheaded BAYC and Mutant Ape Yacht Club but also acquired the pioneering CryptoPunks collection.
Following the announcement, the floor price of Bored Ape NFTs saw a modest rise, reaching 13.75 ETH (approximately $29,650). However, this remains significantly below its May 2022 peak of 153.7 ETH, then valued at around $430,300. Similarly, Mutant Ape NFTs and ApeCoin have experienced steep declines of over 95% from their 2022 highs, while CryptoPunks’ floor price has dropped by more than 70%.
Regulatory Landscape and Industry Impact
The closure of the Yuga Labs investigation reflects a broader shift in the SEC’s enforcement approach toward the crypto industry. Recently, NFT marketplace OpenSea confirmed that the regulator had dropped its investigation into its platform. Additionally, the SEC abandoned its lawsuit against Coinbase and dismissed its case against Kraken on March 3, signaling a potential de-escalation of regulatory scrutiny.
Meanwhile, Custodia Bank CEO Caitlin Long has criticized the U.S. government’s continued inaction on crypto banking policies. Despite expectations of a regulatory shift under a potential Trump administration, Long emphasized that federal banking agencies have yet to reverse their stance on digital assets.
Also Read: Yuga Labs Acquires Tokenproof’s Tech Team to Boost NFT Accessibility and Utility in Web3
With the SEC easing its pressure on NFTs and crypto firms, the industry may witness renewed momentum as regulatory uncertainty diminishes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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