SEC Concludes Multi-Year Investigation into Aave Protocol Without Enforcement Action
The U.S. Securities and Exchange Commission (SEC) has formally concluded its nearly four-year investigation into the Aave Protocol without recommending any enforcement action. The probe, dating back to late 2021 or early 2022, focused on lending and related decentralized finance (DeFi) activities amid intensifying regulatory scrutiny.
Aave founder Stani Kulechov announced the outcome publicly on August 12. Despite closing the investigation, the SEC did not publish any findings or allegations tied to the probe and emphasized that the closure is not an exoneration. The agency reserved the right to reopen the matter in the future.
The lengthy probe demanded considerable effort and resources from Aave and its founder, reflecting ongoing regulatory pressure on DeFi platforms. Notably, in June 2025, Aave engaged with the SEC Crypto Task Force to discuss regulatory approaches, though any direct linkage to the investigation's conclusion remains undisclosed.
The news impacted the AAVE token price, which peaked near $194 before dipping to approximately $184, ultimately trading around $187.67—a 2.4% gain over 24 hours.
This investigation's closure aligns with a broader 2025 shift in crypto enforcement marked by a move toward policy guidance. This includes leadership changes at the SEC and several notable cases, such as Ondo Finance's SEC probe, which also ended without charges on December 8, 2025.
