CyberKongz, the pixelated primate-themed NFT project that once stood at the center of a regulatory storm, has officially been cleared by the U.S. Securities and Exchange Commission (SEC). The agency has closed its two-year-long investigation into the project without pursuing enforcement action, marking a significant victory for the NFT community amid shifting regulatory winds in Washington.
“As for CyberKongz, the shackles are lifted,” the team announced on X.
“We have been preparing for this day for a long time. A full rebrand and new direction for CyberKongz will be announced soon.”
The SEC’s probe into CyberKongz dates back to 2022 and gained public attention when the project disclosed receipt of a Wells Notice in late 2023—a formal notice signaling potential enforcement. At issue was the SEC’s concern over the project’s ERC-20 token and its integration within a blockchain gaming platform, which regulators believed could amount to an unregistered securities offering.
CyberKongz says the process involved “two years of suffering in silence,” as the team worked behind the scenes to comply with regulators while maintaining the integrity of their ecosystem. Now cleared, the project is preparing to relaunch with new branding, revised token mechanics, and a stronger focus on community empowerment.
Regulatory Winds Shift Under Trump-Era SEC
CyberKongz’s regulatory reprieve arrives during a broader recalibration at the SEC. Since the beginning of 2025, the agency has dropped high-profile cases against Coinbase, Kraken, Uniswap, Consensys, and OpenSea, indicating a marked shift in approach under the Trump administration and newly appointed SEC Chair Paul Atkins.
Former Chair Gary Gensler had led a wave of aggressive enforcement actions that frequently classified digital assets as securities—bringing lawsuits against major players and creating widespread industry uncertainty. However, recent developments suggest the agency is pivoting toward rulemaking and industry dialogue, rather than litigation.
To that end, the SEC has formed a Crypto Task Force and is hosting a series of regulatory roundtables to explore how to better govern DeFi, NFTs, and digital asset innovation under existing frameworks. These initiatives aim to foster collaboration between regulators and industry participants, rather than conflict.
NFT Industry Takes Note
The decision to clear CyberKongz is particularly notable given the SEC’s recent enforcement actions in the NFT space. Cases involving Impact Theory and Stoner Cats 2 raised alarm bells by alleging that NFTs sold as investment contracts fell under securities laws. Meanwhile, OpenSea continues to lobby for exemptions that would keep NFT marketplaces outside the scope of traditional financial regulations.
CyberKongz’s clearance offers a much-needed signal of hope for NFT developers and platforms. While regulatory clarity for NFTs is still a work in progress, the case reinforces the idea that compliance, transparency, and adaptive product design may offer viable pathways through the evolving legal landscape.
Quick Facts
- CyberKongz has been cleared by the SEC, with no enforcement action following a two-year probe.
- The project was investigated for its ERC-20 token and blockchain gaming features, which had raised securities concerns.
- This clearance follows a broader regulatory softening under the Trump administration, including dropped cases against major crypto firms.
- A new strategic direction and rebrand for CyberKongz is underway, with the project aiming to rebuild post-investigation.
