The SEC has finally closed the book on its long investigation into Aave — and it’s ending without any punishment, fines, or charges.
After almost four years of watching closely, the U.S. Securities and Exchange Commission decided not to take enforcement action against the Aave Protocol. That means Aave is free to keep operating without the immediate fear of U.S. regulators stepping in.
The investigation started back in late 2021 or early 2022. At the center of it all was one big question: does Aave, and its AAVE token, fall under U.S. securities laws? If the answer had been yes, Aave could have faced serious legal trouble or been forced to register like a traditional financial product.
But that didn’t happen.
Aave founder Stani Kulechov shared the news on X, confirming that the SEC is walking away from the case without recommending any action. No charges. No findings. Just done.
For Aave, this is a huge relief.
It removes a major cloud that’s been hanging over the project for years. Developers, users, and investors now have more clarity, and Aave can focus on building instead of fighting regulators.
This decision also fits into a bigger pattern we’re seeing in 2025.
The SEC has quietly backed off from several high-profile crypto cases. Companies like Coinbase, Kraken, and Uniswap Labs have also seen investigations dropped or dismissed. A New York Times report shows that more than 60% of ongoing crypto cases were paused, reduced, or completely dropped after Donald Trump took office on January 20.
Some of those cases involved big names in crypto, including well-known Trump supporters like the Winklevoss twins.
What’s driving this change? A shift in leadership at the SEC.
Instead of trying to control crypto through lawsuits, the agency now seems to be moving toward clearer rules and guidance. Less courtroom drama. More clarity.
That said, the market hasn’t exactly rewarded Aave yet.
The AAVE token hit a high of $377 on August 24, but then dropped hard. Over the next three months, it fell nearly 60%, touching around $150. As of Tuesday, it was trading near $185 — still down more than 50% for the year.
Even so, removing regulatory risk is a big step forward.
For Aave, this isn’t just the end of an investigation. It’s a fresh start.
