In a landmark decision on the Unkillable Token (NFT) industry, the U.S. Securities and Exchange Commission (SEC) summarizes the investigation into Yuga Labs, a member of the Boring APE Yacht Club (BAYC) and Mutant APE Yacht Club (MAYC) NFT collection and recommends any enforcement action. This development announced by Yuga Labs on March 3, 2025 marks an important moment for the NFT industry and its regulatory landscape.
Survey background
The SEC conducted an investigation into YUGA Labs in October 2022 to determine whether the distribution of the company’s NFT products and the cryptocurrency Apecoin, which is related to the BAYC ecosystem, violates federal securities laws. At the heart of this investigation is the application of Howey Test, a legal framework established by the U.S. Supreme Court in 1946, to assess whether certain transactions are eligible for investment contracts, thus classifying them as securities.
Yuga Labs’ reaction and industry implications
After the investigation, Yuga Labs expressed satisfaction and stated that “After more than 3 years, the SEC has officially closed its investigation into Yuga Labs. It is a huge victory for the NFTS and all creators to push our ecosystem forward. NFTs are not securities.” This result is considered a positive signal for the broader NFT community and has the potential to set a precedent for how digital assets will be classified and regulated in the future.
Source: X
Changes in regulatory approaches
The conclusions of the YUGA lab survey are consistent with a series of recent actions, demonstrating a more tolerant regulatory stance on digital assets under the current SEC leadership. It is worth noting that the SEC has revoked or suspended investigations of several major cryptocurrency companies, including Coinbase, Binance, Robinhood, Opensea and Uniswap. In addition, the agency has reorganized its cryptocurrency division, established a new network and emerging technology division, and formed a working group dedicated to developing clearer regulatory guidelines.
Market reactions and future prospects
After the announcement, the parity of boring APE NFTs on Opensea Marketplace was not much 3.8%, rising from 13.39 ETH to a peak of 13.75 ETH. However, it is important to note that the value of boring ape nfts has dropped significantly compared to the peak price of 153.7 ETH three years ago, reflecting a wider market trend in the NFT sector.
Source: Opensea
The closure of the SEC investigation into this is widely regarded as a critical moment for the NFT industry, providing a clearer regulatory environment that can foster innovation and growth. As the SEC continues to refine its approach to digital assets, stakeholders in the crypto ecosystem still want further regulatory clarity to balance investor protection and promote technological advancement.
About Yuga Lab
Yuga Laboratoryfamous project Boring Ape Yacht Club (BAYC) NFT Collection is one of the leading NFT development companies in the market. In March 2022, Yuga Labs successfully raised $450 millionvalue it to $4 billionand A16Z Lead the investment round with other major investors.
Current projects in the Yuga Labs ecosystem include:
• BAYC (Bored APE Yacht Club)
• Mayc (Mutual Ape Yacht Club)
• BAKC (Bored Ape Club)
• Cryptocurrency
• gentle
•…..
SEC Post investigates Yuga Labs: NFTS and Crypto’s game-changing appearance for the first time at NFT night.
