U.S. Securities and Exchange Commission (SEC) conducts an investigation into the nonfungible token (NFT) market, with Yuga Labs and others on the radar
A source familiar with the matter reported to Bloomberg that the SEC is looking into whether certain NFTs from Yuga Labs could be “more akin to stocks.” The probe is part
of a wider investigation into the NFT market that has been going on since March.
In addition, the regulator is examining the distribution of ApeCoin given to the holders of Bored Ape Yacht Club (BAYC) and other NFTs. As stated on the ApeCoin website, Yuga Labs is a community member in the ApeCoin DAO and will adopt APE as the primary token across its new projects.
Assuming that NFTs would be compared to traditional shares, the sales of certain digital assets might violate federal securities laws.
Meanwhile, Yuga Labs is looking for the advantages of legal scrutiny. It hopes the cooperation of industry players and regulators could “define and shape the burgeoning ecosystem”.
Recently, the SEC has been actively investigating the crypto market in general, charging Kim Kardashian for promoting crypto asset securities and filing the claim regarding the founders and promoters of the Forsage platform, stating it was functioning as a “typical Ponzi structure”.
Moreover, experts suggest SEC may consider Ethereum a security now as it allows holders to “stake” their coins.