Turning the page. Good news on the decentralized finance (DeFi) front with this major statement from the founder and CEO of Aave. Stani Kulechov has officially announced the closure of the investigation by the U.S. Securities and Exchange Commission (SEC) into the protocol after four years of scrutiny. The financial watchdog is dropping any enforcement action, and the global leader in the sector can move on.
The key points of this article:
The SEC has officially closed its investigation without any charges against Aave, after four years of intense scrutiny.
The announcement of the end of the investigation led to an immediate rise in the AAVE token, illustrating the positive impact of this development on the DeFi market.
The SEC drops its charges against Aave: the end of four years of uncertainty
This was confirmed via a letter dated August 12, made public by Stani Kulechov on the social network X. The document explicitly states that the agency has no intention of recommending any ‘enforcement action against Aave’. This decision ends a process initiated nearly four years ago, although the protocol never received a Wells Notice, the formal warning usually preceding legal action.
For the founder of the protocol, this outcome marks the beginning of a ‘new era’ for Web3 developers:
‘After four years, we are finally ready to announce that the SEC has concluded its investigation into the Aave protocol. This process required significant efforts and resources from our team, and from myself personally as founder, to protect Aave, its ecosystem, and DeFi in general. In recent years, decentralized finance (DeFi) has faced unjust regulatory pressures. We are excited to turn the page and enter a new era where developers can truly build the future of finance. Decentralized finance (DeFi) will prevail.’
Stani Kulechov, founder and CEO of Aave – Source: X Account
The SEC, for its part, maintains its usual course of action by refusing to publicly comment on the existence or closure of specific investigations, letting official documents speak for themselves.
The founder of AAVE announces the good news on social media – Source: X Account
A comprehensive regulatory easing under the Trump era
The dropping of charges against Aave is not an isolated case. Since the inauguration of President Donald Trump in January 2025, the American regulatory landscape seems to be pivoting. According to recent data published by the New York Times, the SEC has suspended or dropped about 60% of cases related to crypto companies and projects since the beginning of the year.
Major players like Uniswap Labs, Gemini, and Ripple have also seen their litigations lighten or extinguish. This trend confirms campaign promises aimed at reducing pressure on the digital asset industry. In the markets, the reaction was immediate: the AAVE token recorded an increase of over 3% following the announcement, stabilizing around $185.
The end of the investigation into Aave lifts a sword of Damocles that weighed over one of the pillars of global DeFi. This strong signal from the regulator could encourage a resurgence of investment and technical development within the Ethereum ecosystem. And it’s well-timed; AAVE has plenty of projects for 2026!
