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SEC Ends 4-Year Aave Investigation: Full Details
The SEC concluded its nearly four-year probe without enforcement, reflecting a shift toward clearer crypto regulation and reducing uncertainty for Aave users.
- On Tuesday, the U.S. Securities and Exchange Commission closed its nearly four-year investigation into Aave without staff recommending enforcement and without publishing findings, noting the case could be reopened.
- A regulatory review focused on whether the AAVE token or protocol features constituted securities, and Aave cooperated with SEC staff over several years, which Kulechov said required significant effort.
- Technical plans such as Aave V4's hub-and-spoke model show the protocol's focus on institutional scale, liquidity, and developer tools, with Kulechov outlining a multi-decade roadmap.
- The closure immediately reduced legal overhang, and the AAVE token reached a $187.67 high, dipped to $184, and stabilized, with markets reacting positively.
- Amid those legal developments, Aave faces a governance fight as Aave Labs and the Aave DAO dispute protocol control, while this month’s closure joins other probe endings like Ondo Finance, marking an enforcement shift.
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No legal action will be taken against Aave: here is the conclusion of four years of investigation into the protocol by the SEC (Securities and Exchange Commission). The announcement was made on Tuesday 16 December 2025 by the founder Stani Kulechov; it ends a long period of regulatory uncertainty for one of the most used DeFi platforms. The article The SEC abandons its 4-year investigation on Aave without prosecution appeared first on Cryptoast.
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