U.S. Judge Clears Yuga Labs in NFT Lawsuit, Finding NFTs Not Securities

A U.S. judge has dismissed a lawsuit filed by investors against Yuga Labs, the company behind popular NFTs like the Bored Ape Yacht Club (BAYC). This decision stems from the judge’s conclusion that non-fungible tokens (NFTs) do not meet the legal definition of securities under the Howey Test established by the Securities and Exchange Commission (SEC). Judge Fernando M. Olguin stated that investors failed to demonstrate how NFTs sold by Yuga Labs, including BAYC and ApeCoin (APE), qualified as investment contracts.