NFTs Not a “Common Enterprise” Under Howey Test

[bonk]

Judge Olguin ruled that Yuga Labs’ NFT offerings did not establish a “common enterprise” under the Howey test because there was no ongoing financial link between the purchasers and the company.

According to the ruling, investors paid fees to Yuga that were independent of NFT prices on secondary markets. This distinction weakens claims that buyers reasonably expected profits from Yuga’s efforts.

Consensys attorney Bill Hughes commented on X that the decision reinforces the legal precedent that most digital assets are not securities.

[kelson10]

Interesting legal angle. If upheld, this could shape how NFTs are classified in future regulations.

[EmTeam]

This distinction might give NFT creators more breathing room legally. Important precedent in digital assets.

[Pitchfork_IS_power]

Huge moment for the NFT space ️ This ruling could set a lasting precedent — separating creative digital ownership from securities law. If regulators follow this logic, innovation in NFTs might finally get the clarity it needs to thrive

[jacson4]

@Pitchfork_IS_power