SEC Drops Yuga Labs Probe—No Charges for Bored Ape Creators

Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) NFT collection has been investigated and closed by the US SEC. In a statement, the regulator also confirmed that the firm will escape without enforcement action, concluding the probe that started in October 2022.

Yuga Labs Cleared After Long SEC Investigation

Yuga Labs confirmed the news on March 3, calling it a major win for the NFT industry and digital creators.

After more than three years, Yuga Labs announced on X that the SEC has officially closed its investigation, calling it a major victory for NFTs and creators working to expand the ecosystem.

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

Specifically, the SEC’s inquiry, which was launched in October 2022, was meant to ask if Yuga Labs’ and ApeCoin (APE)’s NFT collections should be considered securities. The probe was also part of a broader effort led by former SEC Chair Gary Gensler that targeted NFT marketplaces and fractionalized NFTs.

Regulatory Shift Under Trump Administration

The closure of the Yuga Labs investigation comes in the wider context of a broader crypto regulation U-turn the SEC has done under the Trump administration. In the past weeks, the agency has dropped its cases against crypto firms like OpenSea, Robinhood, Gemini, and Uniswap Labs.

The SEC has also settled legal disputes with Coinbase, and Kraken, two of the largest U.S. cryptocurrency exchanges. It comes after the Trump administration’s move to loosen regulatory pressure on the digital asset industry.

On March 3, the SEC’s Crypto Task Force announced plans to hold public roundtables as part of an initiative aimed at providing clearer regulations for digital assets. The first session, set for March 21, will address the classification of digital assets under U.S. law.

Market Reaction and Yuga Labs NFT Prices

According to OpenSea data, the Bored Ape Yacht Club (BAYC) NFT collection saw a slight price increase after the news, reaching 13.75 ETH (around $29,650). However, BAYC NFTs remain more than 90% below their May 2022 peak of 153.7 ETH.

Other Yuga Labs collections such as CryptoPunks and Mutant Ape Yacht Club, too, have suffered steep price declines. Elsewhere, NFTs that are linked to the token known as ApeCoin (APE) have experienced a loss of over 95% from this year’s high, which mirrors a broader drop in the market.

What This Means for the NFT Industry

With the SEC dropping multiple crypto-related investigations, there is growing speculation about how future regulations will be shaped. The NFT space, once heavily scrutinized, may see a shift toward clearer rules instead of enforcement-driven crackdowns.

Yuga Labs has been one of the most prominent players in the NFT space, and the SEC’s decision to close the case without charges could set a precedent for other digital asset projects. Many in the crypto and NFT industries are now waiting to see if the SEC will take a more hands-off approach moving forward.