The SEC Examines Yuga Labs, Highlighting Issues in NFTs and Crypto

Yuga Labs, one of the most influential companies in the NFT space, is under investigation from the SEC, which could impact NFTs for all of us.

The SEC Examines Yuga Labs, Highlighting Issues in NFTs and Crypto

The US Securities and Exchange Commission (SEC) has recently launched an investigation into Yuga Labs, the company behind Bored Ape Yacht Club NFTs, ApeCoin, and acquirer of Cryptopunks & Meebits NFTs. The role of the SEC in enforcing currently existing legislation or helping influence new legislation will determine the legality of different assets within the NFT space.

The SEC investigation comes partially from the potential allegation that Yuga Labs offered unregistered securities through ApeCoin, a cryptocurrency that was initially airdropped to holders of different Yuga Labs NFTs. One of the biggest questions at hand will be whether ApeCoin violated the US Securities Act. The price of ApeCoin decreased when the news was made public.

Another open question likely comes from whether or not NFTs should be classified as securities. The findings from the SEC would help determine the answer to that question. Separately, Dapper Labs, the company behind NBA Top Shot NFTs, is currently involved in a lawsuit that alleges NBA Top Shot Moments are unregistered securities.

Many people consider this action against Yuga Labs to represent a broader look that the US government is conducting on NFTs. As the company behind Bored Ape Yacht Club, Mutant Ape Yacht Club, Bored Ape Kennel Club, Otherside, and ApeCoin, Yuga Labs is undoubtedly one of the most powerful companies in the NFT space. It’s still difficult to predict what will come out of this investigation, but depending on what the SEC determines, this could have a significant impact on the NFT industry.