SEC vs. BAYC: NFT’s Next Target of Lawsuits?

previous week became known that the American Securities and Exchange Commission (SEC) the makers of the Bored Ape Yacht Club NFTs is investigating. Yuga Labs allegedly violated securities laws. A number of lawyers have spoken out about the disclosure.

New lawsuit a la Ripple-SEC?

To be precise investigates the SEC or Yuga Labs has sold the popular NFTs and the ApeCoin governance token as securities. The company would not have sold them as a regular product, but as a financial product from which investors expected a return.

If that turns out to be the case, Yuga Labs probably has a problem. The SEC’s investigation may lead to a lawsuit, which could well resemble the policymaker’s case against Ripple (XRP).

Crypto Newspaper Decrypt has spoken with a number of experts in this field, but opinions are divided. Alfred Steiner is a lawyer specializing in NFTs (Non-Fungible Tokens). He was taken aback by the SEC’s stance, but he thinks the amount of outside information sources could limit the storm that regulation can bring. After all, the SEC implies that Yuga Labs is generating hype around the Bored Ape Yacht Club NFTs.

Does the SEC Stand a Chance in BAYC Lawsuit?

Yet there is also an argument in favor of the SEC. For example, even Steiner expects people to buy the NFTs with the aim of making a profit. Brian Fyre, a law professor at the University of Kentucky, agrees. He thinks people actually bought a stake in the value of the Bored Ape Yacht Club brand.

He says it makes sense from the SEC’s perspective to take a closer look at Yuga Labs. this morek is a figurehead for the entire NFT world and is therefore a logical target.

Read Also:  Team India to Meet Prime Minister Narendra Modi After T20 World Cup Victory

As a lawyer, Jeremy Goldman also focuses specifically on NFTs. He also thinks the SEC has a chance. It is more obvious for the policymaker to tackle a project for the regulation of NFTs that is clearly wrong. So maybe the SEC has a better chance than you might think.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here