SEC Closes Four-Year Investigation Into Aave Protocol, Boosting DeFi Clarity

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The U.S. Securities and Exchange Commission (SEC) has closed its four-year investigation into the Aave protocol. Stani Kulechov, Aave’s founder, confirmed the resolution, which brings clarity to the DeFi space. The SEC did not take action against the core protocol, signaling that well-designed, decentralized systems may avoid securities classification. The decision reflects Aave’s unique governance and architecture. It offers a reference for DeFi developers and investors. The SEC may now focus on centralized exchanges and staking. The outcome is not an endorsement but a positive precedent. What is clear is that the DeFi industry now has a clearer regulatory benchmark.
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