LogInThe US Securities and Exchange Commission is examining if NFT should follow the stock rules.
The US Securities and Exchange Commission (SEC) is investigating the creator of the Bored Ape Yacht Club collection of NFTs Yuga Labs over whether the tokens are more akin to stocks and should follow the same disclosure rules, reported Bloomberg. The SEC is also examining the distribution of ApeCoin cryptocurrency, which was given to holders of the NFTs.
This doesn't mean there is anything wrong or that Yuga Labs will be sued.
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” Yuga said in a statement to Bloomberg News. “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”
The investigation is started by SEC Chair Gary Gensler to ensure the crypto market follows the regulations. The organization has brought many enforcement cases against digital asset firms for failing to register their offerings.
The SEC is also investigating whether ApeCoin is tantamount to a security. The currency gives its holders influence over a decentralized autonomous organization (DAO) to shape the decentralized, blockchain-powered vision of the internet. The DAO would use the blockchain to enable and record votes on decisions related to how the community is managed.
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