Reportedly, the United States Securities and Exchange Commission (SEC) probe into Yuga Labs is part of an investigation around the non-fungible token (NFT) market, as reported by Cointelegraph.
According to Cointelegraph, in an October report by Bloomberg, it mentioned a source close to the matter made the claim that SEC is investigating Yuga Labs over whether certain NFTs are related to stocks and whether sale of certain digital assets are in violation of federal laws. The publication made the point that the investigation is related to the current SEC probe into the NFT market, which has made the enquiry around the possibility of whether certain NFTs and fractional NFTs could come under the purview of federal securities laws.
On the basis of information by Cointelegraph, in March, anonymous sources informed Bloomberg that the SEC undertook investigation of NFT creators and marketplaces on whether certain NFTs are being made use of to raise money such as traditional securities.
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3.0. 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,” a Yuga Labs spokesperson said.
Moreover, Cointelegraph noted that Bloomberg reported that the regulator is undertaking the examination on the distribution of ApeCoin, which was handed to the holders of Bored Ape Yacht Club (BAYC) and other NFTs. Insights from the ApeCoin (APE) website showed that Yuga Labs is a community member in the ApeCoin DAO and make the adoption of APE as the primary token for the purpose of its new projects.
Going by Cointelegraph’s website, founded in 2013, it is a digital media resource covering news on blockchain technology, cryptocurrency assets, and emerging financial technology (fintech) trends.
(With insights from Cointelegraph)
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