The US SEC is investigating the team behind Bored Ape Yacht Club and other NFT projects

According to reports, the SEC is investigating whether some NFTs from Yuga Labs might be “more akin to stocks.”

The sources notes that the SEC’s investigation into Yuga Labs is actually a part of a larger probe into the non-fungible token (NFT) market, which was first made public in March.

In addition, a report from Bloomberg on October 11 says that the SEC is looking into Yuga Labs to determine whether certain NFTs are “more akin to stocks” and whether the sale of specific digital assets is in violation of the law.

On top of that, some claim that the inquiry is a component of the SEC’s ongoing inquiry into the larger NFT market, which is examining whether specific NFTs and fractional NFTs might be subject to federal securities laws.

According to unnamed sources who spoke to Bloomberg in March, the SEC was looking into NFT developers and exchanges to see if “certain nonfungible tokens […] are being used to raise money like traditional securities.”

The SEC “does not comment on the existence or nonexistence of a possible investigation,” a spokesperson for the agency told Cointelegraph.

Yuga Labs also commented on the situation, saying,

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3.”

Moreover, the team added that they 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,” says Yuga Labs team.

According to Bloomberg, the regulator is looking into how ApeCoin was distributed to the owners of Bored Ape Yacht Club (BAYC) and other NFTs.

Yuga Labs will use APE as the main token for all of its new projects, and a community member in the ApeCoin DAO according to the ApeCoin announcement last week.