"SEC Clears Yuga Labs: NFTs Not Securities"

Yuga Labs, a prominent player in the NFT market and creator of the Bored Ape Yacht Club, has secured a significant victory as the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the company's operations. This marks a crucial moment for the NFT industry, as it reaffirms the position that NFTs are not securities.

The SEC's decision to close the investigation comes after three years of regulatory scrutiny. Yuga Labs announced the closure on March 3, framing it as a victory not just for the company but for the broader NFT space. The SEC initially launched its probe in October 2022, amid growing concerns over whether certain NFTs functioned similarly to stocks and should be classified as securities under U.S. regulations. This investigation was part of a broader crackdown on the crypto and NFT industries led by former SEC Chair Gary Gensler, with regulators particularly focused on fractionalized NFTs.

At the height of the NFT boom, Yuga Labs dominated the market, producing some of the most sought-after digital collectibles. Its Bored Ape Yacht Club and Mutant Ape Yacht Club collections became status symbols among celebrities and crypto investors. The company also acquired CryptoPunks, one of the earliest and most influential NFT projects.

Following the announcement of the SEC's decision, the NFT market saw a slight uptick. The floor price of Bored Ape NFTs climbed to 1375 ETH, approximately $29,650, though it remains far below its May 2022 all-time high of 1537 ETH, then valued at $430,300. Other Yuga Labs assets, such as its Mutant Ape NFTs and its ecosystem token ApeCoin, have also struggled in the post-boom NFT landscape, with both assets plummeting by over 95 percent from their 2022 highs, according to CoinGecko. Even CryptoPunks, once considered a gold standard in digital collectibles, has seen a 70 percent decline from its peak.

While the market reaction to the SEC's decision was modest, it signals a positive shift in sentiment for NFT holders and industry players who have long feared overreach from regulators. The SEC's decision to close its Yuga Labs probe