Catenaa, Tuesday, March 04, 2025-The US Securities and Exchange Commission (SEC) has officially closed its investigation into Yuga Labs, the creator of the Bored Ape Yacht Club NFT collection, and has agreed to dismiss its lawsuit against cryptocurrency exchange Kraken, marking a major shift in crypto regulation.
Yuga Labs confirmed the SEC’s decision in a statement on X, calling it a “huge win for NFTs and all creators pushing our ecosystem forward,” asserting that “NFTs are not securities.” The SEC first launched its probe into the company in October 2022 as part of broader scrutiny of digital assets.
Meanwhile, Kraken announced that the SEC has agreed in principle to drop its lawsuit, which alleged the exchange operated as an unregistered securities broker. The case will be dismissed with prejudice, meaning it cannot be refiled. Kraken will not pay fines or admit wrongdoing.
The move follows the SEC’s recent withdrawal of investigations into major crypto firms, including Coinbase, Uniswap, Robinhood, and OpenSea.
The regulatory shift aligns with leadership changes at the SEC and the White House, signaling a more innovation-friendly approach.
Despite these developments, the SEC’s lawsuit against Ripple remains ongoing. Meanwhile, former President Donald Trump has proposed including XRP, Bitcoin, Ethereum, Solana, and Cardano in a Crypto Strategic Reserve.
