Bored Ape’s Yuga Labs Faces SEC Investigation Over Potential Unregistered Assets

Bored Ape’s Yuga Labs Faces SEC Investigation Over Potential Unregistered Assets

Recently, it was revealed that The U.S. Securities and Exchange Commission, also known as the SEC is currently investigating Yuga Labs, the team behind major NFT projects like Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC).

The Investigation

According to reports from Bloomberg, a source familiar with the matter claims that the SEC have taken to this investigation in order to determine whether their BAYC NFTs and ApeCoin tokens are considered to be securities, and if so, whether they have broken the rule of the selling of unregistered securities.

Read More: A Hacker Steals $100 million from Solana DeFi Trading Platform, Mango Markets

The investigation itself was not spurred on due to any wrongdoings on Yuga Labs part, but instead, was described to be an investigation in order to help policymakers better understand NFTs and the world of Web3. 

A Yuga Labs spokesperson told Bloomberg, “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.

Related: This Bored Ape Just Sold For A $1 Million Loss!

What This Could Mean For NFTs 

Although this situation has admittedly caused nervousness among some in the space, others claim that this investigation could lead to good results.

The past year or so, the white house and other government officials have been focused on initiatives to make proper regulations for Cryptocurrencies and other things within the Web3 space, and now, by working on looking into the largest NFT project yet, this investigation could aid in giving the SEC a better understanding that will allow them to properly define securities and commodities in relation to crypto and NFTs.

Related: SEC Charge Kim Kardashian $1,300,000 Fine After Promoting EthereumMax on Social Media

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