US Court Rules Bored Ape NFTs Not Securities, Defining Future of NFT Regulation

A US federal court has ruled that Bored Ape Yacht Club (BAYC) NFTs are not securities, dismissing a lawsuit against Yuga Labs. The ruling stemmed from the absence of a common enterprise between Yuga Labs and NFT holders, as determined by Judge Fernando M. Olguin, who applied the Howey test for securities classification. This decision provides legal clarity for NFT companies, potentially shaping future regulatory approaches and impacting market dynamics despite BAYC’s price decline and ongoing saturation challenges.