The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) NFT collection, without taking any enforcement action. This decision marks a significant regulatory win for the NFT industry, as it reinforces the argument that NFTs are not securities.

SEC’s Inquiry and Its Impact on Yuga Labs

The SEC began its investigation into Yuga Labs in October 2022 to determine whether its NFT collections and ApeCoin (APE), a token associated with BAYC, should be classified as securities under the Howey Test. This inquiry was part of a broader regulatory effort to oversee the crypto and NFT markets.

Yuga Labs publicly celebrated the SEC’s decision in a post on X, stating that this outcome supports the broader NFT ecosystem.

Regulatory Trends and SEC’s Changing Stance

https://x.com/yugalabs/status/1896687377915187538

The SEC’s decision to drop the case against Yuga Labs aligns with a series of recent regulatory shifts. The agency has recently settled lawsuits with Coinbase and Kraken and concluded investigations into OpenSea, Robinhood, Gemini, and Uniswap Labs.

These developments indicate a potential softening of the SEC’s approach toward digital assets, possibly reflecting internal shifts in regulatory priorities.

Market Reactions and BAYC’s NFT Floor Price

The conclusion of the SEC’s probe could have a direct impact on the BAYC NFT market. While BAYC NFTs currently trade around 13.75 ETH—down more than 90% from their all-time high of 153.7 ETH in May 2022—this regulatory clarity might encourage renewed investor interest.

Market analysts suggest that a clearer regulatory landscape could restore confidence in the NFT sector, leading to potential price recoveries.

SEC’s Future Plans: Spring Sprint Toward Crypto Clarity

The SEC’s Crypto Task Force has announced a series of roundtable discussions titled "Spring Sprint Toward Crypto Clarity" to address the legal status of digital assets.

The first event, "How We Got Here and How We Get Out – Defining Security Status," is scheduled for March 21 from 17:00 to 21:00 UTC. These discussions aim to provide clearer regulatory guidelines for digital assets and signal the agency’s evolving stance on cryptocurrency regulation.

As the crypto industry watches closely, these developments could shape the future regulatory landscape for NFTs and digital assets in the U.S.