With the new Donald Trump administration, the US crypto regulations have seen a significant change, keeping his promises to his crypto supporters who have participated and raised funds for his election campaigns, Trump has now blown the wind towards crypto, which was the other way earlier.
Following the case drops including Gemini, Uniswap, Robinhood Crypto, and Consensys, the SEC has now dropped its investigation on Yuga Labs, an NFT company known for its Bored Ape Yacht Club NFT collection. The SEC closed the 3-year-long case, revealed Yuga Labs saying NFTs don’t fall under existing security regulations. What does this move signify, is it hint at the changed wave for crypto in the US?
Yuga Labs v/s SEC: Case History
SEC launched its case on Yuga Labs in October 2022, questioning whether specific NFTs could be classified as securities under federal law as they are similar to traditional stocks. Evaluating its NFT collections including Bored Ape Yacht Club, SEC looked at whether NFTs can be classified as investment contracts.
Yuga Lab was at the forefront of NFTs when the market had shown its peak. Owning some of the popular and high-priced NFT collections including Ape and Mutant Yacht Club, Yuga Labs was attracted by a large number of investors. It also earned ownership of Crypto Punks, a popular NFT that has collected high sums in the past.
With the SEC’s case, Yuga Labs was highly affected. Its NFT collection’s price dropped dramatically and the token associated with the company’s NFT, ApeCoin also faced a downturn. The price of Crypto Punk declined, a significant down from its peak value in 2022.
Will Yuga Labs Make A Comeback In The NFT Marketplace?
With the case drop, the floor price of Bored Ape showed a 3% rise on Monday, from 13.39 ETH to 13.9 ETH on the OpenSea NFT Marketplace. However, once known as the champion of NFTs, Bored Ape’s price is still declining sharply. The NFT whose value has once reached 153.7 ETH is now trading at a floor price of 13.9 ETH, a 91% down from its peak value.
Recently, Yuga Labs has focused on expanding its crypto native initiatives, the company has launched BAY LCC, a subsidiary to offer autonomous ownership for its flagship NFTs like Bored Ape Yacht Club and Mutant Yacht Club.
The company was restructured and had multiple waves of layoffs, showing plans for a comeback. With the case resolved, the company can regain its momentum with strategic plans, allowing it to regain its lost glory.
What Does SEC’s Consecutive Investigation Drops Signify?
Apart from Yuga Labs, the SEC has recently dropped its investigation on many crypto firms including Binance, Coinbase, OpenSea, Robinhood, Consensys, Uniswap, etc. What does the changed move portray, is it a new wave for crypto in the US?
SEC has always considered crypto as a speculative asset that affects investor’s security. In a mission to turndown crypto in the US, many moves were made by the SEC, including filing cases against popular crypto institutions. However, with the new government things are getting better.
With the changed US government under Donald Trump, an admirer of crypto, many changes are happening in the US crypto landscape. The appointment of Mark Uyeda as the standing Chairman of crypto, relieved the strong crypto regulations in the country, and the withdrawal of cases also reflects the new administration’s stance on crypto.
SEC also replaced its crypto division with the Cyber and Emerging Technologies Unit and formed a task force to bring clear and transparent regulatory guidelines to crypto. Donald Trump has launched a meme coin under his name and also announced plans for a strategic reserve, boosting the crypto industry like never before.
