SEC Ends Yuga Labs Investigation Amid Trump’s NFT Marketplace Trademark Filing

This week’s Nifty Newsletter brings significant updates from the NFT and metaverse landscape. The US Securities and Exchange Commission (SEC) has officially dropped its investigation into Yuga Labs, a leading NFT firm. In a related development, former President Donald Trump has filed trademarks for a metaverse and NFT marketplace, signaling his entry into the digital asset space. Additionally, gambling platform DraftKings is set to settle its NFT lawsuit for $10 million, marking a pivotal moment in the NFT industry.

Yuga Labs Investigation Concluded

Yuga Labs announced that the SEC has closed its investigation after three long years. The inquiry, which began in October 2022 under former SEC chair Gary Gensler, was part of a broader examination into NFTs, their creators, and marketplaces to determine if NFT assets could be classified as securities. The conclusion of this investigation is a significant relief for Yuga Labs, which has been at the forefront of the NFT revolution.

Trump’s NFT Marketplace Ambitions

In a surprising move, DTTM Operations, a company owned by Donald Trump, has filed for trademarks related to the word “TRUMP” in connection with a metaverse and NFT marketplace. The trademark application outlines a Trump-themed virtual world where users can shop for both physical and virtual goods, dine in themed restaurants, and experience luxury transportation options like limousines and aircraft. This venture could potentially reshape the NFT landscape, attracting a new audience to the metaverse.

DraftKings Settles NFT Lawsuit

In another notable development, DraftKings has agreed to pay $10 million to settle a class-action lawsuit brought by its NFT buyers. A federal court judge granted a preliminary settlement motion on February 28, 2023, allowing the company to resolve all claims related to the lawsuit. The suit alleged that DraftKings sold NFTs that constituted investment contracts under securities laws and were unregistered securities. If approved, this settlement will bring closure to a case that has been ongoing since 2023.

Hamster Kombat Launches Layer-2 Network

Meanwhile, the Web3 gaming sector is witnessing innovation with the launch of Hamster Kombat’s new layer-2 network, the Hamster Network. This blockchain, based on The Open Network (TON), aims to support Web3 games and decentralized applications. Hamster Kombat has emphasized that this network will enable developers to launch games entirely on-chain, allowing for a more integrated gaming experience. “We’re not talking about centralized games that store only specific pieces of data or NFTs on-chain,” the team stated. They are committed to allowing games to place their “entire logic” within smart contracts, enhancing the decentralization of gaming.

Conclusion

As we wrap up this week’s digest of the most notable developments in the NFT space, it’s clear that the landscape is rapidly evolving. With the SEC’s decision to drop the Yuga Labs investigation, Trump’s ambitious foray into the NFT marketplace, and DraftKings’ settlement, the NFT and metaverse sectors are poised for significant growth. Stay tuned for more updates next Wednesday as we continue to explore this dynamic and exciting industry.

For more detailed insights, check out the original article.