A U.S. federal judge has dismissed an investor lawsuit against Yuga Labs, ruling that Bored Ape Yacht Club (BAYC) NFTs and related tokens do not qualify as securities under the Howey Test. The court determined that there was no common enterprise or explicit profit promises associated with the NFT sales. Instead, purchasers acquired digital collectibles and membership perks, not investment contracts. The ruling emphasized that most digital assets are not securities, citing independent fees and public blockchain trading data. This decision is specific to the Yuga Labs case and underscores the role of contractual terms and marketing in NFT classification.
Judge Rules BAYC NFTs Are Not Securities, Dismisses Yuga Labs Lawsuit
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