The US Securities and Exchange Commission (SEC) has decided to tighten its command over the digital asset industry. The Commission has alleged certain firms, tokens and exchanges of the misdeeds. This time, however, famous NFTs have landed under his radar.

Will BAYC be charged by SEC?

According to reports, the US watchdog has alleged that Bored Ape Yacht Club (BAYC) parent company Yuga Labs has broken the law with the sale of its digital assets. The committee will investigate whether certain Yuga Lab NFTs are comparable to equities and must comply with the same disclosure rules.

Meanwhile, the committee is also inspecting the distribution of the recently launched Apecoin distribution. The token has been issued to the holders of the BAYC and NFTs.

Since the news broke, Bored Ape Yacht Club NFT’s bottom price and Apecoin price have registered a slight drop. However, data suggests that both digital assets have not performed well in recent months.

The bottom price of BAYC NFT has fallen by about 3% in the past 24 hours. However, in the past 90 days, it has fallen by 27%. The bottom price is at 73 Ethereum.

However, Apecoin prices have fallen by about 8% in the last 24 hours. APE is trading at an average price of $4.73 at press time. The price has fallen by 14% in the past 30 days. Meanwhile, the 24-hour trading volume is up 130% to $340 million.

Does the watchdog want to prove something?

The report states that Yuga has not yet been charged with any violation and that an investigation may not lead to the SEC suing the company. This could be another attempt by Gary Gensler, chairman of the SEC, to ensure that the cryptocurrency follows the rules carefully.

On multiple occasions, the SEC chairman has claimed that most crypto assets would be subject to regulation. Recently, Gensler has put American fashion celebrity Kim Kardashian in the spotlight to the annoyance of promoting the security of digital assets.

Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he’s not writing, he plays video games, watches a thriller, or works out outside. Reach me at [email¬†protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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