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.”
According to data from Nansen, the price of the Aave token (AAVE) surged more than 3% in the previous 24 hours, reaching $187.85.
Related: SEC closed investigation into Gemini with no action, says Winklevoss
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.
Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice
This is a developing story, and further information will be added as it becomes available.
