SEC Drops Probe: Yuga Labs Declares Victory for NFTs

The probe, which began in October 2022, aimed to determine whether certain NFTs functioned similarly to traditional stocks and should be regulated as securities.

This was part of an effort under former SEC Chair Gary Gensler to examine the NFT market, including creators and trading platforms, to assess potential regulatory concerns.

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On March 3, Yuga Labs confirmed the investigation’s conclusion in a post on X, calling it a “huge win for NFTs and all creators pushing our ecosystem forward”. The company also stated, "NFTs are not securities".

In May 2022, Yuga Labs dominated the NFT market with collections like Bored Ape Yacht Club and Mutant Ape Yacht Club. The cheapest Bored Ape NFT was once priced at around $430,300 when Ethereum ETH $2,097.53 was trading at $2,800.

Following the company’s announcement, the collection’s floor price increased slightly to 13.75 ETH (around $29,650) but remains down more than 90% from its all-time high of 153.7 ETH.

Other Yuga-related assets, including Mutant Ape NFTs and ApeCoin, have declined by over 95% since their 2022 peaks. CryptoPunks, which Yuga Labs acquired, has seen floor prices drop more than 70% from their highest levels.

Meanwhile, DraftKings, a sports betting and daily fantasy sports (DFS) company, has agreed to a $10 million settlement in its NFT legal dispute. What led to this outcome? Read the full story.