SEC Drops Yuga Labs NFT Probe: A Win for Digital Assets

Coin WorldMonday, Mar 3, 2025 6:47 pm ET

1min read

Yuga Labs, the prominent NFT conglomerate, has announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into the company. The SEC's probe, which began under former Chair Gary Gensler, was part of a broader examination of NFTs to determine if certain types, such as fractional NFTs, could be classified as securities under U.S. laws.

Yuga Labs, known for its popular NFT collections like Bored Ape Yacht Club and Mutant Ape Yacht Club, as well as its acquisition of the CryptoPunks rights, received the news of the investigation's closure on March 3. The company took to Twitter to express its satisfaction with the outcome, stating, "After 3+ years, the SEC has officially closed its investigation into Yuga Labs. This is a huge win for NFTs and all creators pushing our ecosystem forward. NFTs are not securities."

The SEC's decision to drop its investigation into Yuga Labs comes amidst a shift in the regulator's approach towards the crypto industry under the Trump administration. In recent weeks, the SEC has also closed its investigations into NFT marketplace OpenSea and crypto exchange coinbase, as well as dismissed a yearslong lawsuit against crypto exchange Kraken.

The SEC's actions suggest a more lenient stance towards the crypto industry, which could have significant implications for the future of NFTs and other digital assets. As the regulatory landscape continues to evolve, industry players and investors alike will be watching closely to see how the SEC's approach to crypto and NFTs develops under the new administration.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.