The SEC has closed its investigation into Aave Protocol after four years of investigation.
Date: 2025-12-17 Author: Henry Casey Categories: BUSINESS
The US Securities and Exchange Commission (SEC) has officially closed its investigation into Aave Protocol, which lasted approximately four years. The project's founder, Stani Kulechev, announced this, emphasizing that the conclusion of the case was a significant event not only for the protocol's team but for the entire decentralized finance sector.
According to Kulechev, the lengthy process of engaging with the regulator required significant resources and effort. The Aave team and he personally were forced to focus on protecting the protocol, its ecosystem, and the principles of DeFi as a whole. Now that the investigation is complete, the project can develop under a more predictable legal environment, and regulatory pressure has noticeably decreased.
Aave's founder noted that in recent years, the DeFi sector has been under increased and, in his view, unfair scrutiny from regulatory authorities. He expressed hope that the case's dismissal will symbolize a transition to a new era in which developers can focus on creating financial products without the constant risk of enforcement action. Kulechev emphasized that reducing regulatory uncertainty paves the way for innovation and the wider adoption of decentralized solutions.
The conclusion of the investigation against Aave Protocol fits into a broader trend of the SEC's softening stance toward the cryptocurrency industry. According to The New York Times, since January 2025, the regulator has suspended, closed, or dismissed approximately 60% of cases involving crypto companies. This indicates a rethinking of the agency's approach to regulating digital assets.
Among the SEC's most notable decisions is the dismissal of the lawsuit against Ripple Labs, which had long been considered a key case for the entire industry. Furthermore, the regulator and Binance reached an agreement to jointly dismiss the case. The lawsuit against Binance Holdings, BAM Trading, BAM Management, and exchange co-founder Changpeng Zhao was filed back in June 2023, but the parties agreed to dismiss the proceedings.
Furthermore, the SEC formally closed the cases against Kraken, Consensys, and Cumberland, filing joint motions to dismiss the pending civil lawsuits. In its filings, the Commission noted that it is taking steps to reform and update its regulatory approach to the crypto industry, taking into account its development and specific features.
Thus, the Aave Protocol decision is yet another signal that the regulatory environment in the US is gradually changing. For DeFi projects, this means the opportunity to operate under clearer conditions and focus on long-term development rather than legal defense.
