Bored Ape NFTs Not Securities, Federal Judge Rules in Key Yuga Labs Case

• Court rules Bored Ape NFTs not securities, ending Yuga Labs class-action case.
• Judge finds no common enterprise for NFTs sold on third-party platforms like OpenSea.
• Royalties show Yuga’s profits independent of holder gains, weakening the SEC’s argument.

A federal court in California has ruled that Bored Ape Yacht Club (BAYC) NFTs are not securities, closing a class-action lawsuit that had challenged the legal status of one of the most well-known digital collectible projects. The decision ends years of uncertainty surrounding Yuga Labs’ compliance with U.S. securities law and marks one of the simplest judicial statements yet on non-fungible tokens’ (NFTs) regulatory classification.

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