The United States Securities and Exchange Commission has ended a four-year investigation into decentralised finance protocol Aave, according to its founder and chief executive.
Aave founder and CEO Stani Kulechov said the regulator does not intend to recommend an enforcement action against the platform.
Kulechov shared a letter dated August 12 from the SEC confirming the conclusion of the probe.
The letter indicated that Aave had been under investigation since around 2021 and may have faced potential enforcement action.
“We’re glad to put this behind us as we enter a new era where developers can truly build the future of finance,” Stani Kulechov said.
Public records on the SEC’s website do not show that a Wells notice was ever issued to Aave.
A Wells notice typically signals that the regulator is considering formal enforcement action against an entity.
The SEC declined to comment on the details of the matter or confirm the existence of any investigation.
“The commission does not comment on the existence or nonexistence of a possible investigation,” an SEC spokesperson said.
Market reaction followed the disclosure, with the Aave token rising more than 3% in the 24 hours after the letter was shared.
Data from Nansen showed AAVE briefly trading above $187 before stabilising.
The closure of the probe comes amid a broader shift in the SEC’s approach to crypto oversight.
Since January, the regulator has dropped or paused several long-running investigations into crypto firms.
Cases involving Uniswap Labs, Gemini and Ripple have also been wound down this year.
A report from The New York Times said the SEC has dismissed or paused roughly 60% of its crypto-related cases since early 2025.
The change in tone follows the inauguration of United States President Donald Trump, who campaigned on reducing regulatory pressure on the crypto industry.
Industry observers say the Aave decision could signal a more permissive environment for decentralised finance development.
Aave remains one of the largest DeFi protocols by total value locked and lending activity.
The company has not indicated whether the end of the probe will alter its product roadmap or compliance strategy.
At the time of reporting, Aave price was $183.71.