$AAVE Aave Gets Regulatory Green Light as SEC Closes Probe
The U.S. Securities and Exchange Commission has officially wrapped up its long-running review of the Aave protocol, ending an investigation that lasted close to four years. Importantly, the regulator chose not to pursue any enforcement action, lifting a major cloud of uncertainty that had been hanging over the DeFi platform.
The inquiry examined whether Aave’s lending activities and the AAVE token could be classified under U.S. securities regulations. After extensive review, the SEC decided against filing charges or taking further steps.
With this chapter closed, Aave is now free to move forward with its development and ecosystem growth without the immediate threat of regulatory action. The outcome also aligns with a wider pattern seen in 2025, as multiple crypto-related investigations have been quietly concluded without penalties.
