PANews reported on October 4 that according to Cointelegraph, a US judge dismissed investors' lawsuit against Web3 company Yuga Labs, ruling that the case failed to prove that NFT meets the legal definition of securities. Judge Fernando M. Olguin ruled that the plaintiffs failed to demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin, or other NFTs sold by Yuga met the three conditions of the Howey test. The Howey test is the standard used by the U.S. SEC to determine whether a transaction constitutes an investment contract. The lawsuit was originally filed in 2022. Olguin said Yuga Labs marketed its NFTs as digital collectibles and offered membership benefits to an exclusive club, making them consumer products rather than investment contracts. “The defendants’ promises that NFTs would generate future, rather than immediate, consumer benefits do not transform those benefits from being consumer products to being investments.”PANews reported on October 4 that according to Cointelegraph, a US judge dismissed investors' lawsuit against Web3 company Yuga Labs, ruling that the case failed to prove that NFT meets the legal definition of securities. Judge Fernando M. Olguin ruled that the plaintiffs failed to demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin, or other NFTs sold by Yuga met the three conditions of the Howey test. The Howey test is the standard used by the U.S. SEC to determine whether a transaction constitutes an investment contract. The lawsuit was originally filed in 2022. Olguin said Yuga Labs marketed its NFTs as digital collectibles and offered membership benefits to an exclusive club, making them consumer products rather than investment contracts. “The defendants’ promises that NFTs would generate future, rather than immediate, consumer benefits do not transform those benefits from being consumer products to being investments.”

A US judge dismissed a lawsuit against Yuga Labs, ruling that ApeCoin and BAYC NFTs do not constitute securities

2025/10/04 08:48
1 min read

PANews reported on October 4 that according to Cointelegraph, a US judge dismissed investors' lawsuit against Web3 company Yuga Labs, ruling that the case failed to prove that NFT meets the legal definition of securities.

Judge Fernando M. Olguin ruled that the plaintiffs failed to demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin, or other NFTs sold by Yuga met the three conditions of the Howey test. The Howey test is the standard used by the U.S. SEC to determine whether a transaction constitutes an investment contract. The lawsuit was originally filed in 2022.

Olguin said Yuga Labs marketed its NFTs as digital collectibles and offered membership benefits to an exclusive club, making them consumer products rather than investment contracts. “The defendants’ promises that NFTs would generate future, rather than immediate, consumer benefits do not transform those benefits from being consumer products to being investments.”

Market Opportunity
Notcoin Logo
Notcoin Price(NOT)
$0,0004072
$0,0004072$0,0004072
+%0,24
USD
Notcoin (NOT) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

The post Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny appeared on BitcoinEthereumNews.com. The cryptocurrency world is buzzing with a recent controversy surrounding a bold OpenVPP partnership claim. This week, OpenVPP (OVPP) announced what it presented as a significant collaboration with the U.S. government in the innovative field of energy tokenization. However, this claim quickly drew the sharp eye of on-chain analyst ZachXBT, who highlighted a swift and official rebuttal that has sent ripples through the digital asset community. What Sparked the OpenVPP Partnership Claim Controversy? The core of the issue revolves around OpenVPP’s assertion of a U.S. government partnership. This kind of collaboration would typically be a monumental endorsement for any private cryptocurrency project, especially given the current regulatory climate. Such a partnership could signify a new era of mainstream adoption and legitimacy for energy tokenization initiatives. OpenVPP initially claimed cooperation with the U.S. government. This alleged partnership was said to be in the domain of energy tokenization. The announcement generated considerable interest and discussion online. ZachXBT, known for his diligent on-chain investigations, was quick to flag the development. He brought attention to the fact that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce had directly addressed the OpenVPP partnership claim. Her response, delivered within hours, was unequivocal and starkly contradicted OpenVPP’s narrative. How Did Regulatory Authorities Respond to the OpenVPP Partnership Claim? Commissioner Hester Peirce’s statement was a crucial turning point in this unfolding story. She clearly stated that the SEC, as an agency, does not engage in partnerships with private cryptocurrency projects. This response effectively dismantled the credibility of OpenVPP’s initial announcement regarding their supposed government collaboration. Peirce’s swift clarification underscores a fundamental principle of regulatory bodies: maintaining impartiality and avoiding endorsements of private entities. Her statement serves as a vital reminder to the crypto community about the official stance of government agencies concerning private ventures. Moreover, ZachXBT’s analysis…
Share
BitcoinEthereumNews2025/09/18 02:13
MAXI DOGE Holders Diversify into $GGs for Fast-Growth 2025 Crypto Presale Opportunities

MAXI DOGE Holders Diversify into $GGs for Fast-Growth 2025 Crypto Presale Opportunities

Presale crypto tokens have become some of the most active areas in Web3, offering early access to projects that blend culture, finance, and technology. Investors are constantly searching for the best crypto presale to buy right now, comparing new token presales across different niches. MAXI DOGE has gained attention for its meme-driven energy, but early [...] The post MAXI DOGE Holders Diversify into $GGs for Fast-Growth 2025 Crypto Presale Opportunities appeared first on Blockonomi.
Share
Blockonomi2025/09/18 00:00
DeAgentAI releases new white paper, detailing $AIA token economics and staking model

DeAgentAI releases new white paper, detailing $AIA token economics and staking model

PANews reported on September 18 that the Sui ecological AI project DeAgentAI announced that it has updated its official white paper to version V2. The new white paper primarily adds "token economics" and "staking mechanisms." The token economics section details $AIA's core functions, value capture model, token distribution ratio, and detailed release rules. The staking mechanism section explains $AIA's value and how to stake it. In addition, the white paper also published security audit reports issued by multiple institutions on core components such as token contracts and cross-chain bridges.
Share
PANews2025/09/18 12:05