The SEC has finished its investigation into Yuga Labs. This investigation looked into whether the company’s Bored Ape Yacht Club (BAYC) NFTs and ApeCoin broke federal securities laws.
The probe began in October 2022. It aimed to find out if Yuga Labs’ NFTs and ApeCoin should be considered securities under U.S. law. The SEC used the Howey Test for this. The Howey Test comes from a Supreme Court case from 1946.
Yuga Labs started in 2021 and quickly grew. By 2022, the company was valued at $4 billion after raising $450 million in funding. The BAYC collection has been very successful, generating billions in trading volume.
