SEC drops Yuga Labs investigation into BAYC NFTs and ApeCoin

Key Takeaways

The SEC has closed its investigation into Yuga Labs, confirming that BAYC NFTs and ApeCoin are not securities.
Despite the investigation’s closure, ApeCoin’s price showed no significant change over the past 24 hours.

The SEC has closed its investigation into Yuga Labs, ending a probe that examined whether the company’s Bored Ape Yacht Club (BAYC) NFTs and ApeCoin violated federal securities laws.

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.

— Yuga Labs (@yugalabs) March 3, 2025

The investigation, which made headlines in October 2022, focused on Yuga Labs’ NFT offerings and ApeCoin distribution.

The SEC sought to determine if these digital assets should be classified as securities under US law using the Howey Test, a legal framework from a 1946 Supreme Court case.

Yuga Labs, founded in 2021, reached a $4 billion valuation after raising $450 million in funding by 2022.

The company’s BAYC collection has generated billions in trading volume, making it a prominent player in the NFT space.

ApeCoin, which is down 16% over the past 24 hours according to Coingecko data, showed no immediate price reaction to the investigation’s closure.