Judge Dismisses Bored Ape NFT Lawsuit, Clarifying Legal Status of NFTs
A federal judge in California has dismissed a class-action lawsuit against Yuga Labs, the company behind the popular Bored Ape Yacht Club (BAYC) NFTs. The ruling provides clarity for the NFT market, reducing the risk of future legal actions.
The case involved six Yuga digital assets: BAYC NFTs, MAYC NFTs, BAKC NFTs, Otherdeed NFTs, Meebits NFTs, and ApeCoin. The court dismissed the argument that Yuga formed a 'common enterprise' with NFT purchasers. The judge opined that potential future benefits from NFTs do not necessarily constitute an investment.
The ruling clarifies that BAYC NFTs and ApeCoin do not qualify as securities under U.S. law. NFTs sold for access, perks, or cultural value are less likely to be considered securities. The plaintiffs failed to prove that purchasing BAYC NFTs or ApeCoin satisfied the Howey test for securities. This decision may motivate more NFT artists to emphasize utility and community over the prospect of monetary gain.
The ruling provides legal clarity for the NFT market, reducing the risk of future lawsuits or SEC actions against similar projects. Despite the ruling, the current floor price for a Bored Ape remains high, at approximately 8.13 ETH, around $36,600, down from its peak of $369,900 in April 2022.
Read also:
- Germany Launches HoLa Project for Megawatt Charging on A2 Motorway
- Transforming Digital Inventories in the Food Industry: A Comprehensive Guide for Food Businesses
- Canada's Transportation Revolution: Hyperloop & Electric Air Taxis by 2026
- ACC Expands European Battery Production with Three New Gigafactories
