SEC concludes 4-year investigation into Aave Protocol

The U.S. Securities and Exchange Commission has concluded its four-year investigation into the Aave Protocol without recommending enforcement action, according to founder Stan Kulechov.

“We’re glad to put this behind us,” Kulechov wrote on X, saying the process demanded major resources from the team and personally from him to defend Aave, its ecosystem, and DeFi at large. He said the outcome signals a shift toward a new era where developers can “truly build the future of finance.”

The SEC’s notice stated: “We have concluded the investigation… Based on the information we have as of this date, we do not intend to recommend an enforcement action.” It also noted that this should not be construed as exoneration.

Aave is one of the largest decentralized finance protocols, with billions in TVL and a key role in shaping lending and borrowing across crypto.