- The SEC has officially closed its investigation into Yuga Labs without taking any enforcement action.
- Bored Ape NFT prices saw a slight bump after the news, but overall values remain down 91% from their peak.
- Yuga Labs is restructuring under CEO Greg Solano while the SEC shifts its regulatory stance on crypto.
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT collection, without taking any enforcement action, the company confirmed Monday.
Yuga Labs had been under SEC scrutiny since 2022, with regulators probing whether its NFT sales and ApeCoin token distribution violated federal securities laws. But now, the case is closed.
The company celebrated the decision, calling it a “huge win” not just for itself but for the broader NFT industry. “NFTs are not securities,” Yuga Labs declared, adding that the move benefits “all creators pushing our ecosystem forward.”
While Yuga Labs didn’t immediately respond to further requests for comment, the SEC has also remained silent on its reasoning behind the decision.
Market Reaction and NFT Landscape
The news had an immediate impact—floor prices for Bored Apes on OpenSea rose 3.8% on Monday, climbing from 13.39 ETH to a local peak of 13.9 ETH.
However, the once-iconic NFT collection, once flaunted by celebrities as digital status symbols, has seen a dramatic decline in value. The floor price, which peaked at a staggering 153.7 ETH during the last crypto bull market nearly three years ago, has since plummeted by around 91%, according to CoinGecko data.
Yuga Labs Restructures Amid Industry Changes
This regulatory win comes at a time of major transition for Yuga Labs. The company recently underwent a restructuring effort, which included a new wave of layoffs—part of an ongoing shake-up following an initial round of job cuts last October.
Yuga Labs co-founder Greg “Garga” Solano, who stepped back in as CEO in February, addressed the internal changes head-on. “I owe everyone a frank and honest explanation of what led to this decision. To put it simply: Yuga lost its way,” he wrote in a Slack message shared on Twitter.
Shifting Regulatory Winds
The SEC’s decision to drop its case against Yuga Labs is part of what appears to be a broader regulatory shift. In recent weeks, the agency has dismissed or paused legal actions against several major crypto firms, including Coinbase, Binance, Robinhood, OpenSea, and Uniswap.
Additionally, the SEC has disbanded its crypto division, replacing it with a newly formed Cyber and Emerging Technologies Unit. It has also launched a task force to develop clearer regulatory guidelines, signaling a potential softening stance toward the crypto industry.
Yuga Labs Looks Ahead
Under Solano’s leadership, Yuga Labs has been doubling down on its crypto-native initiatives. In February, the company launched BAYC LLC, a dedicated subsidiary designed to give its flagship NFT brand greater autonomy.
While the road ahead remains uncertain, one thing is clear: Yuga Labs is navigating a rapidly shifting landscape, both within the NFT space and the broader crypto market.
