Crypto Lending Protocol Aave Says SEC Has Ended 4-Year Investigation: 'DeFi Will Win'
The U.S. Securities and Exchange Commission has concluded its four-year investigation into Aave, a major decentralized finance (DeFi) lending protocol, with no plans to recommend enforcement action. Aave’s CEO, Stani Kulechov, stated the process required significant resources and effort to protect Aave and the DeFi sector. Kulechov described recent regulatory pressures as unfair, expressing optimism for DeFi's future. The SEC declined to comment on the investigation. Aave currently manages $32.79 billion in assets, up from $13.21 billion four years ago. In 2024, the Trump-backed World Liberty Financial project proposed to build on Aave and purchased nearly $1 million in AAVE tokens before shifting focus to a stablecoin. Aave’s case is one of several closed crypto investigations under Trump’s SEC, including Binance, Coinbase, and Ripple Labs. Some remain cautious about the administration’s crypto legacy, noting ongoing prosecutions of crypto privacy software developers. Trump recently said he would consider pardoning one such developer, Keonne Rodriguez, but the likelihood remains low.
