Last updated:
Author
Ruholamin Haqshanas
Author
Ruholamin Haqshanas
Share
Why Trust Cryptonews
Yuga Labs, the NFT powerhouse behind Bored Ape Yacht Club, announced that the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the company.
“After 3+ years, the SEC has officially closed its investigation into Yuga Labs,” the company stated in a March 3 post on X.
“This is a huge win for NFTs and all creators pushing our ecosystem forward.” Yuga Labs also reiterated its stance that “NFTs are not securities.”
SEC Launched Yuga Labs Probe in 2022 Amid NFT Scrutiny
The SEC initially launched its probe into Yuga Labs in October 2022.
The investigation aimed to determine whether certain NFTs functioned like traditional stocks and should be classified as securities under U.S. regulations.
The probe, initiated during the tenure of former SEC Chair Gary Gensler, was part of a broader examination into the NFT space, including creators and marketplaces, with a particular focus on fractionalized NFTs.
At its peak, Yuga Labs was a dominant force in the NFT market, producing some of the most sought-after digital collectibles.
In addition to its flagship Bored Ape Yacht Club and Mutant Ape Yacht Club collections, the company acquired the rights to CryptoPunks, a pioneering NFT series that commanded high prices in the past.
Following the news, the floor price of Bored Ape NFTs saw a modest increase, reaching 13.75 ETH (approximately $29,650).
However, the collection remains significantly below its all-time high from May 2022, when the floor price peaked at 153.7 ETH—valued at around $430,300 at the time.
Similarly, Yuga Labs’ Mutant Ape NFTs and ApeCoin, a token associated with the company’s ecosystem, have plummeted over 95% from their 2022 highs, according to CoinGecko.
CryptoPunks’ floor price has also dropped by more than 70% from its peak.
The SEC’s decision to close its Yuga Labs probe follows a broader shift in its enforcement strategy toward the crypto industry.
Late last month, NFT marketplace OpenSea confirmed that the regulator had dropped its investigation into the platform.
The SEC also recently abandoned its lawsuit against Coinbase and dismissed its case against Kraken on March 3, signaling a potential de-escalation of regulatory scrutiny.
Custodia Bank CEO Criticizes US Government’s Inaction on Crypto Debanking Under Trump
Despite shifting regulatory landscape, Custodia Bank CEO Caitlin Long has criticized the U.S. government’s failure to address crypto debanking since former President Donald Trump returned to office.
Last week, Long stated that despite the perception of a policy shift, federal banking agencies have not reversed any anti-crypto regulations.
“It is still presumed unsafe and unsound for a bank to touch a digital asset even in a de minimis amount,” Long said, emphasizing that no regulatory changes have been made regarding crypto banking.
As reported, cryptocurrency enforcement in the United States may ease under the upcoming administration of Republican President-elect Donald Trump, with regulatory priorities expected to shift.
Speaking at a legal conference in New York, current and former senior government lawyers indicated that while financial fraud cases will still be pursued, the Justice Department’s focus will likely move toward immigration enforcement, a key campaign promise of Trump.
