After four years, the U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into DeFi protocol Aave, without recommending any enforcement action. While the community celebrates this regulatory victory, internal tensions within the Aave DAO are escalating over the allocation of CowSwap fees.
SEC Steps Back – No Lawsuits, No Penalties
Aave founder Stani Kulechov announced the news via X, confirming that the SEC's Enforcement Division would take no further action. He emphasized the resources and effort the Aave team had to invest to protect the protocol and the broader DeFi space.
“It’s been a challenging journey. But now we’re ready to build the next era of decentralized finance,” Kulechov wrote, adding:
“DeFi will win.”
The decision also validated that the AAVE token is not considered a security, which impacted the market only modestly. The token dropped around 3%, trading at approximately $188. On the day of the broader crypto market downturn, AAVE briefly dipped to $185.
DAO Drama: CowSwap Fees Spark Controversy
While the SEC chapter is closing, new tensions are rising within the Aave DAO. Accusations surfaced that Aave Labs was keeping CowSwap swap fees that should have gone into the DAO treasury.
Kulechov responded by explaining that these fees come from outside the core protocol, representing a separate product layer. However, he confirmed that the team does plan to share these revenues with the DAO going forward.
Further claims emerged around revenue from Horizon RWA, suggesting it was being diverted. Kulechov rejected these accusations outright, saying the claims were false and clarifying that Horizon actually generates income for the DAO treasury.
Kulechov Urges Growth Over Internal Conflict
Kulechov also addressed what he called an unhealthy focus on “meta revenue debates,” which he believes distract from long-term innovation.
“Everyone’s racing for growth. Arguing about revenue is pointless. It’s time to invest in the future — including through AAVE token buybacks,” he stated.
#SEC , #AAVE , #defi , #CryptoNews , #CryptoCommunity
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