Non-Fungible Tokens are now not in the best condition. There has been a noticeable decline in NFT sales on various NFT markets, notably OpenSea, indicating that the enthusiasm surrounding the technology has worn off. However, as evidenced by the SEC’s probe into Yuga Labs, the attention surrounding NFTs doesn’t seem to be abating.
Yuga Labs, the company behind Bored Ape Yacht Club (BAYC), is under investigation by the US Securities and Exchange Commission (SEC), according to Bloomberg. The goal of the investigation is to determine whether the Non-Fungible Tokens collection from the Bored Ape Yacht Club broke any federal laws.
BAYC NFTs categorized as securities?
According to the information provided by the person with knowledge of the situation, the SEC is considering whether any of the NFTs offered by Yuga Labs are comparable to securities and whether they need to adhere to the same regulations.
The SEC is also investigating the manner in which ApeCoin was given to members of the Bored Ape Yacht Club and related NFTs. The investigation has not yet been made public, and it does not establish any wrongdoing on the part of Yuga Labs.
Yuga Labs stated,
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem.” “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”
The SEC is also investigating the potential that a security-like property exists in ApeCoin. In addition to giving the holders APE, BAYC gave them a say in their DAO.
The regulators are now paying more attention to digital assets, crypto companies, and the overall crypto sector. It is a part of ongoing efforts to make sure that crypto businesses and the entire market abide by the rules.