Since then, the world has seen NFTs endorsed by artists, wielded by large corporations, and inevitably, targeted by regulators. The arguably most famous NFTs—the apes—had managed to avoid regulatory attention until last week when the U.S. Securities and Exchange Commission opened a probe into Yuga Labs, the owner of not only the aforementioned Bored Ape Yacht Club, but of a significant share of the NFT market.
To be sure, the question the SEC is raising with its probe has been brewing for some time: Are NFTs securities?
For many attorneys and experts in the digital assets space, the SEC’s investigation comes as no surprise. They pointed to signs leading up to this moment, from questions about fractionalizing NFTs and sharing ownership over them to trading them like stocks. Regardless of what the SEC finds in the Yuga Labs probe, many believe the final word on NFTs is far from near, because the digital asset market is complicated, and NFT creators are unlikely to give in without a fight.
‘Enforcement 40’ for 2020
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