✍️ 19 December, 2023 – 20:24 👤 Editor: Jakub Motyka
- The US regulator is scrutinizing BAYC developers for alleged violation of securities laws.
- SEC is also examining fractionalized NFTs; something feared could possibly kill the sector.
- The latest news about crypto, in our Telegram channel.
The US Securities and Exchange Commission is probing the conduct of Yuga Labs, the creator of Bored Yacht Club NFTs. The agency wants to know if the sale of BAYC digital assets breached the securities provisions.
Specifically, sources say, the SEC is looking into NFTs by a Miami-based firm. The watchdog is examining whether the asset class relates to stocks, and if the players adhered to the set policies.
Besides, the agency has concerns about the distribution of ApeCoin. According to the SEC, APE, distributed to BAYC holders, could have contravened the said legislations.
Yuga Labs Pledges Full Corporations, Welcomes The Probe As A Game Changer
BAYC developer, recently commented that the investigation does not condemn its actions. In effect, the company termed the scrutiny as an opportunity to legally define NFTs and Web3. Additionally, Yuga said it was ready to comply with the inquest.
The SEC investigation is not specific to BAYC. The commission is also looking into possible violations in fractional NFTs. The term refers to the smaller units of NFTs, making them more affordable. Fractionalized NFTs are easy to buy and sell.
The inquiry marks the latest attempt by the Gary Gensler-led commission to curb crypto. In his previous comments, Gensler wants the digital assets to be fully under the commission’s watch. To support of his argument, he added that the asset class closely mirrors securities as per the 1940 supreme decision.
In the precedent, an investment becomes a security if it has a profit element. Particularly, the SEC is using the Howey Test to determine whether an asset is a security or not.
About BAYC and ApeCoin
BAYC has gained popularity as the most famous NFT. The series of primates’ cartoons currently trades for hundreds of dollars. ApeCoin cryptocurrency was issued in March to BAYC holders. The token aims to facilitate NFTs and to enhance a decentralized internet of blockchains.
According to CoinMarketCap, APE is down 8% in the past day and 10% in the last week. Despite the token hitting the market with strong bullish momentum, the SEC probe and a bearish market sentiment seem to have contained further uptrend.
More crypto news:
- Axie Infinity Raylights, The New Game You Can Play From Your Browser
- Google Now Allows You To Know The Balance Of Any Ethereum (ETH) Wallet
- Decentraland (MANA) Costs $150,000 Per User, According To This Crypto Expert
- What Is Crypto Copy Trading - 28 de March de 2023
- What Does Bitcoin FUD Mean - 28 de March de 2023
- What Is Bull Flag In Crypto And How To Identify It - 28 de March de 2023