This decision reinforces the stance that non-fungible tokens (NFTs) are not classified as securities, which is a win for the NFT community and creators.

The SEC's investigation, initiated in October 2022 under former chair Gary Gensler, was part of a broader scrutiny of digital assets and included various NFT projects.

The closure of the investigation aligns with a broader trend of the SEC easing its stance on the crypto industry, potentially fostering innovation.

The SEC has also closed investigations into other companies like OpenSea and dropped lawsuits against crypto exchanges, suggesting a shift in regulatory focus.

This regulatory decision is expected to help alleviate uncertainty in the NFT market, potentially leading to a rebound in NFT investments.

The US Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, marking a significant moment for the NFT industry.

Yuga Labs announced this development on March 4, 2025, following a three-year inquiry that evaluated whether their NFTs and the associated ApeCoin violated securities laws.

The inquiry focused on whether Yuga Labs' NFTs fell under the regulatory definition of securities, which would impose stricter compliance requirements.

Yuga Labs has consistently maintained that their NFTs are digital collectibles and do not meet the criteria for securities classification.

Industry experts believe the SEC's decision may influence future regulatory approaches to NFTs and the broader cryptocurrency market.

Recent case closures also include investigations into other NFT-related platforms, indicating a potential regulatory pivot.

In the wake of the investigation's conclusion, ApeCoin's value decreased by 12.74%, reflecting market reactions to the regulatory news.