Sources say that the United States Securities and Exchange Commission (SEC) probe into Yuga Labs is actually part of a wider investigation into thenonfungible token (NFT)market, which already came to light in March.

On Oct. 11, areportfrom Bloomberg citing a source “familiar with the matter” said the SEC is investigating Yuga Labs over whether certain NFTs are “more akin to stocks” and whether the sales of certain digital assets violate federal laws.

However, Cointelegraph understands that the investigation is part of the ongoing SEC probeinto the wider NFT market, which is looking at whethercertain NFTs and fractional NFTscould fall under federal securities laws.

In March, anonymous sources told Bloomberg theSEC was investigating NFT creatorsand marketplaces whether “certain nonfungible tokens […] are being utilized to raise money like traditional securities.”

A spokesperson for the SEC told Cointelegraph that it “does not comment on the existence or nonexistence of a possible investigation.”

Meanwhile, Yuga Labs appears to be looking at the bright side of things. In a statement to Cointelegraph it said:

“It’s well-known that policymakers and regulators have sought to learn more about the novel world of Web3,” said a Yuga Labs spokesperson:

“We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”

Bloomberg also reported the regulator is examining the distribution of ApeCoin, which was given to the holders of Bored Ape Yacht Club (BAYC) and other NFTs.

According to the ApeCoin (APE) website, Yuga Labs is a community member in the ApeCoin DAO and will adopt APE as the primary token across its new projects.