SEC Drops Long-Running Investigation Into Aave Protocol
The SEC concluded its multi-year investigation into the Aave Protocol without recommending enforcement action.Summary
The U.S. Securities and Exchange Commission (SEC) has officially closed its long-running investigation into the Aave Protocol, issuing a notice on December 16 stating it does not intend to recommend enforcement action at this time. This decision removes a significant regulatory overhang for the decentralized finance (DeFi) sector, though the SEC noted the closure does not constitute exoneration and reserves the right to act later. The probe, which began around 2021–2022, focused on the non-custodial lending platform governed by AAVE token holders. Concurrently, Aave is facing internal governance scrutiny regarding a recent front-end change that some DAO members claim could divert up to $10 million in annual swap fee revenue away from the DAO treasury, a claim Aave Labs disputes by stating the front-end is a separate product.
(Source：BeInCrypto)