Bored Ape Creator Yuga Labs Says SEC Closing Investigation in 'Huge Win' for NFT Sector

The SEC’s decision to close the case reinforces the view industry proponents held—that NFTs do not fall under existing securities regulations.

The U.S. Securities and Exchange Commission has closed its investigation into Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT collection, without taking enforcement action, the company said on Monday.

Yuga Labs had been under SEC scrutiny since 2022 over whether its NFT offerings and ApeCoin token distribution violated federal securities laws.

The company welcomed the decision, calling it a "huge win" for the NFT industry. The company also labeled the move as a boon for "all creators pushing our ecosystem forward."

"NFTs are not securities," it said.

Yuga Labs did not immediately respond to Decrypt's request for comment. The SEC has yet to answer questions on the reasoning behind its closure.

The floor price for Bored Apes on the NFT marketplace OpenSea jumped 3.8% on Monday, from 13.39 ETH to a local peak of 13.9 ETH.

Still, those remain down about 91% from their floor price of 153.7 ETH, seen almost 3 years ago during crypto's last major cycle, CoinGecko data shows.

The move Monday comes as the SEC appears to be shifting its regulatory stance on the crypto.

In recent weeks, the agency has dropped or suspended cases against major crypto firms, including Coinbase, Binance, Robinhood, OpenSea, and Uniswap.

The SEC has also replaced its crypto division with a new Cyber and Emerging Technologies Unit and formed a task force aimed at developing clearer regulatory guidelines.

Yuga Labs, under CEO Greg Solano, has focused on expanding its crypto-native initiatives.

In February, the company launched BAYC LLC, a subsidiary to provide greater autonomy for its flagship NFT brand.

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