The US Securities and Exchange Commission (SEC) is reportedly investigating the potential classification of non-fungible tokens (NFTs) as securities. The regulator is also examining whether the sale of NFTs, including Yuga Labs’ ApeCoin distribution, violates federal laws. This development comes as the SEC continues to scrutinize the rapidly growing NFT market, which has seen significant growth in recent years. It is not yet clear what impact this investigation may have on the overall NFT market, but it is important for investors and those involved in the industry to stay informed about any regulatory updates.
The SEC Goes NFT
The information was first to let free through Bloomberg’s crypto team and the signature Bloomberg Terminal. The U.S. Securities and Trade Fee (SEC) has lengthy explored NFTs with few agency statements to end results, however, that might change pending the evolution of this newest information.
In line with the Bloomberg report, the SEC is trying into whether or not Yuga Labs-issued belongings are “more akin to stocks and should follow the same disclosure rules,” which might go away from the NFT sphere with large implications. Nevertheless, no costs appear imminent, and Yuga Labs has expressed a vocal need to work with regulators to come back to amicable resolutions, with a Yuga rep telling 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.”
ApeCoin (APE) took a notable hit after information that the SEC was trying into Yuga Labs exercise. | Supply: APE-USD on TradingView.com
Occasions Are Changin’ Round Right here
The SEC has not but commented on the matter, and Yuga Labs’ ApeCoin has taken success upon the information. The report follows not long after vocal NFT neighborhood member and creator of Solana-based powerhouse challenge DeGods, Frank, teased “big changes” coming to NFTs; DeGods and different subsidiary initiatives have since shifted to a 0% royalty mannequin, however, might Frank have been teasing potential regulatory adjustments, too?
It’s unimaginable to say, however regulatory crackdowns on NFTs will undoubtedly dampen an already crushed-down market in NFTs.
