SEC ends probe into Aave after four years, CEO says

Stani Kulechov, founder and CEO of Aave, said the US Securities and Exchange Commission ended a four-year investigation into the decentralized finance platform. 

In a Tuesday X post, Kulechov provided an Aug. 12 letter from the SEC saying that the agency did “not intend to recommend an enforcement action” against Aave. The text of the letter suggested that the protocol had faced a potential enforcement action by the SEC in a probe initiated about four years ago.

“We’re glad to put this behind us as we enter a new era where developers can truly build the future of finance,” said Kulechov.

Publicly available records on the SEC’s website do not show a Wells notice issued to Aave. A Wells notice is a notification of a potential enforcement action. The protocol had not responded to a request for comment at the time of publication.

In a statement to Cointelegraph, an SEC spokesperson said the commission “does not comment on the existence or nonexistence of a possible investigation.”

Related: SEC closed investigation into Gemini with no action, says Winklevoss

According to data from Nansen, the price of the Aave token (AAVE) surged more than 3% in the previous 24 hours, reaching $187.85.

Is the SEC fulfilling Trump’s campaign promise of lessening crypto enforcement?

The end of the investigation into Aave would be the latest SEC action softening on regulation and enforcement moves against crypto companies since the inauguration of US President Donald Trump in January.

This year, the regulator dropped many years-long investigations and cases, including those against Uniswap Labs, Gemini and Ripple. A report from The New York Times, released on Sunday, showed that since January, the SEC has paused, dropped investigations related to, or dismissed about 60% of cases involving crypto companies and projects.