The U.S. Securities and Change Fee (SEC) has ended its 4-year investigation into Aave Protocol, a growth which comes as Aave Labs clashes with DAO members over the CoW swap charges. The AAVE worth remained largely unchanged regardless of this growth, which confirms that the token is just not a safety.
SEC Drops Investigation Into Aave Protocol
In an X submit, Aave’s founder, Stani Kulechov, revealed that the SEC has concluded its investigation into the DeFi protocol after 4 years. He highlighted how the method demanded vital effort and sources from their staff to guard the highest DeFi protocol, its ecosystem, and DeFi as a complete.
After 4 years, we’re lastly able to share that the SEC has concluded its investigation into the Aave Protocol.
This course of demanded vital effort and sources from our staff, and from me personally because the founder, to guard Aave, its ecosystem, and DeFi extra… pic.twitter.com/aZeLrZz5ZQ
— Stani.eth (@StaniKulechov) December 16, 2025
Kulechov additional remarked that DeFi has confronted regulatory strain lately and that they’re simply glad to place the SEC investigation behind them as they enter a brand new period the place builders can really construct the way forward for finance. “DeFi will win,” he added.
The SEC’s discover to the DeFi protocol confirmed that the SEC’s Division of Enforcement doesn’t intend to suggest any enforcement motion towards the DeFi protocol. In the meantime, the AAVE worth remained tepid on the again of this growth.
TradingView information exhibits the DeFi token is buying and selling at round $188, down nearly 3% within the final 24 hours. The token had dropped to as little as $185 on the day amid the latest crypto market crash.
The DAO Saga Drags On
In an X submit in the present day, Kulechov addressed the reviews that Aave Labs diverted CoW swap charges from the DAO treasury. He said that the CowSwap surplus income comes from outdoors of the protocol and is a separate product characteristic, though they plan to share this income with the DAO.
CowSwap surplus income comes from outdoors of the protocol (and a separate product characteristic), which is one thing that will probably be shared with the DAO. Concerning Horizon, and the declare of undisclosed income that can be false data. The truth is Horizon is producing income to the…
— Stani.eth (@StaniKulechov) December 16, 2025
There have been additionally accusations that the agency diverted Horizon RWA revenues. Nonetheless, the Aave founder said that the declare of undisclosed income is fake data. He added that Horizon is producing income for the DAO treasury.
Kulechov additionally talked about that Aave Labs has been liable for the protocol’s income streams over the previous 5 years by constructing merchandise on high of the protocol that may develop it. “As a facet notice, the income meta is type of ineffective in a world the place everyone seems to be arm racing in direction of development. It’s time to spend money on development (by way of AAVE buybacks) to develop the pie,” he stated.
