The SEC is looking into not-for-profit ventures like Bored Ape QuoteCoin
New York City: According to a person with knowledge of the situation, the SEC is investigating whether or not some NFTs issued by Yuga Labs might be “more comparable to stocks.”
According to many sources, the investigation into Yuga Labs that is being conducted by the United States Securities and Exchange Commission (SEC) is really a subset of a larger inquiry into the market for nonfungible tokens (NFT), which was first brought to light in March.
According to a report that was published by Bloomberg on October 11 and cited a source that was “familiar with the matter,” the SEC is investigating Yuga Labs to determine whether or not certain NFTs are “more akin to stocks” and whether or not the sales of certain digital assets violate federal laws.
However, according to what Cointelegraph has been told, the investigation is a part of the ongoing SEC probe into the wider NFT market. This particular investigation is looking into whether certain non-fungible tokens and fractional non-fungible tokens could be considered securities under federal law.
Bloomberg reported in March that it had received information from unnamed sources that the SEC was examining NFT developers and markets to see if “some nonfungible tokens […] are being leveraged to generate money like conventional securities.”
A spokeswoman for the Securities and Exchange Commission that the agency said that “it does not comment on the presence or nonexistence of a prospective inquiry.”
Yuga Labs is a community member in the ApeCoin DAO, as stated on the website for ApeCoin (APE), and the company plans to use APE as the main currency for use across all of its future initiatives.
