After more than two years under regulatory scrutiny, Yuga Labs announced that the US Securities and Exchange Commission (SEC) has officially closed its investigation into the company without taking enforcement action.
While the agency has not disclosed the specific reasoning behind its decision, the move aligns with a broader shift in the SEC’s approach to cryptocurrency regulation.
NFTs Not Securities
The inquiry began in October 2022 and sought to determine whether Yuga Labs’ NFT offerings, including the Bored Ape Yacht Club (BAYC) collection and the distribution of ApeCoin, violated federal securities laws.
The SEC’s decision not to pursue charges more than two years later marks a significant milestone for the NFT space. In a statement on X, Yuga Labs called it a “huge win” for the industry and for creators driving the digital asset ecosystem forward.
“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.”
In recent weeks, the regulatory watchdog has either dropped or suspended investigations into major crypto firms, including Coinbase, Binance, Robinhood, Gemini, OpenSea, and Uniswap. The SEC has also disbanded its previous crypto division and introduced a new Cyber and Emerging Technologies Unit, signaling a potential recalibration of its regulatory stance.
Bored Apes’ floor price on OpenSea briefly hit 13.9 ETH on Monday. After a minor dip, however, the current price has settled at 13.75 ETH.
NFT Market
The NFT market faced significant challenges in 2024 as trading volumes fell to $1.5 billion by the third quarter. However, a partial rebound in the fourth quarter pushed volumes back up to $2.6 billion.
This volatility was accompanied by a decline in total sales compared to 2023, indicating that NFTs were sold at higher prices, possibly influenced by rising token values such as ETH. By year-end, the overall trading volume had dropped by 19%, while sales numbers declined by 18%.
Despite the short-term plunging values, the global NFT market is expected to grow by $84.13 billion between 2025 and 2029, according to Technavio’s recent study. This growth is projected at an annual rate of 30.3%. The increasing demand for digital art and interest from major brands are key factors driving this expansion but uncertainty surrounding NFTs remains a challenge for the market.
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