U.S. SEC Closes Four-year Probe Into Aave, Takes No Enforcement Action

The U.S. Securities and Exchange Commission has officially closed its four-year investigation into Aave, signaling that it does not intend to recommend enforcement action. The development was confirmed by Aave founder Stani Kulechov, who described the conclusion as a major relief for the DeFi ecosystem.

Kulechov said the investigation demanded significant time and resources to defend the protocol and protect decentralized finance more broadly. He added that the closure marks a new phase where builders can focus on innovation rather than regulatory uncertainty.

Market reaction was muted, with AAVE trading around $188 and down nearly 3% over 24 hours amid wider crypto market volatility. The announcement comes as Aave Labs faces internal DAO discussions around CoW swap fee revenue.

Kulechov clarified that the revenue originates outside the core protocol and that plans are underway to share proceeds with the DAO, aiming to maintain transparency and alignment.

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