Yoga Labs secures major victory as SEC shuts down investigation

Yoga Labs' control battle ends as SEC closes investigation.

After more than two years in custody, Yuga Labs has officially announced that the US Securities and Exchange Commission (SEC) has closed its investigation into the company without taking any enforcement action.

While the agency did not reveal the specific reasoning behind the decision, the move is in line with broader changes in the SEC's regulatory framework for cryptocurrencies.

NFTs are not securities

The inquiry began in October 2022 and sought to determine whether Yuga Labs' NFT offerings, including the Bored Ape Yacht Club (BAYC) collection and distribution of ApeCoin, violated federal securities laws.

The SEC's decision not to pursue charges after two years is a major milestone for the NFT space. In a statement at X, Yuga Labs called it a “huge win” for the industry and for creators pushing forward the digital asset ecosystem.

“After 3+ years, the SEC has officially closed its investigation into Yuga Labs. This is a huge win for NFTs and all the creators that drive our ecosystem forward. NFTs are not securities.”

In recent weeks, the regulator has dropped or suspended investigations into major crypto firms, including Coinbase, Binance, Robinhood, Gemini, OpenSea and Uniswap. The SEC has dismantled its previous crypto division and introduced a new cyber and emerging technologies division, signaling that it may retool its regulatory stance.

The board monkey floor price on OpenSea briefly reached 13.9 ETH on Monday. After a small dip, however, the current price is set at 13.75 ETH.

NFT market

The NFT market faces significant challenges in 2024, with trading volume falling to $1.5 billion in the third quarter. However, a partial rebound in the fourth quarter pushed the figure to $2.6 billion.

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This volatility shows a decrease in total sales compared to 2023, indicating that NFTs will sell at higher prices, possibly affecting the prices of tokens such as ETH. At the end of the year, the total transaction volume was down 19 percent, while the sales number was down 18 percent.

Despite the short-term falling values, the global NFT market is expected to grow to $84.13 billion between 2025 and 2029, according to a recent study by Technavio. This growth is expected at an annual rate of 30.3%. Rising demand for digital art and interest from major brands are key factors driving this expansion, but uncertainty surrounding NFTs continues to be a challenge for the market.