‘DeFi will win,’ Aave CEO says after SEC ends years-long probe
The Securities and Exchange Commission has concluded its investigation into the Aave Protocol, Aave CEO Stani Kulechov confirmed, adding Aave to the growing list of crypto entities no longer under the agency’s scrutiny.In a post on Tuesday on X, Kulechov said that the SEC had "concluded its investigation" after four years. "DeFi has faced unfair regulatory pressure in recent years," Kulechov said. "We’re glad to put this behind us as we enter a new era where developers can truly build the future of finance."The end of the investigation now allows Aave Labs to "confirm the outcome publicly," an Aave Labs spokesperson said in a message to The Block. “This is the first time this outcome has been announced by Aave Labs," the spokesperson said. "The multi-year review involved ongoing regulatory engagement and has now formally concluded, allowing Aave Labs to confirm the outcome publicly."An SEC spokesperson said that the agency typically does not comment on the existence or nonexistence of a possible investigation. In a screenshot of a letter dated Aug. 15, attached to the post, it says that the SEC planned not to recommend an enforcement action against the Aave Protocol. The letter also cites the Wells Notice — a form of communication from SEC staff that lets a firm know that the agency's staff may recommend an enforcement action against them. Earlier this month, Ondo Finance said that the SEC had closed an investigation that started under the Biden administration. Under the previous presidential administration, the SEC took a cautious approach to digital assets, while also bringing several cases against big-name crypto firms for failing to register with the agency. Since the agency has taken a different approach to digital assets, including dropping many enforcement actions around registration issues against crypto firms, creating a crypto task force and embarking on "Project Crypto," to update its rules with a focus on onchain activity.Updated at 6:25 p.m. UTC on Dec. 16 to include comments from an Aave Labs spokesperson Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.