SEC Wraps Up Investigation Into Aave Protocol, Confirms CEO Stani Kulechov
The US Securities and Exchange Commission (SEC) has formally concluded its investigation into the decentralized finance (DeFi) protocol Aave (AAVE), marking a big growth within the ongoing evolution of regulatory approaches throughout the cryptocurrency trade.
Stani Kulechov, the founder and CEO of the Aave protocol, confirmed the tip of the four-year investigation in a publish on social media, expressing reduction and optimism about the way forward for DeFi.
Aave Founder Celebrates End Of SEC Investigation
In his announcement, Kulechov emphasised the appreciable effort and assets invested by the Aave workforce all through this course of. He said, “We are lastly able to share that the SEC has concluded its investigation into the Aave Protocol.”
Highlighting the impression of regulatory scrutiny on DeFi, he added, “This course of demanded vital effort… to guard Aave, its ecosystem, and DeFi extra broadly.”
Kulechov expressed hope for a brand new chapter by which builders can freely innovate and contribute to the way forward for finance, asserting, “DeFi will win.”
This conclusion is notable in opposition to the backdrop of heightened regulatory pressure that DeFi tasks have confronted in recent times. Under the earlier SEC chair, Gary Gensler, the company made a concerted effort to implement rules within the crypto area.
In 2021, the SEC initiated 19 enforcement actions associated to cryptocurrency in simply the primary 9 months. However, latest patterns reveal a considerable shift within the fee’s stance on crypto enforcement.
SEC Eases Crypto Enforcement Actions By Over 60%
Since President Donald Trump returned to the White House, the SEC has reportedly eased enforcement actions in over 60% of ongoing cryptocurrency instances.
A New York Times investigation revealed lately analyzed 1000’s of presidency paperwork and courtroom information, revealing that the SEC has both dismissed, paused, or diminished penalties for a big majority of lively crypto instances since January 20, 2021.
While Trump’s first time period noticed a median of 1 high-profile cryptocurrency case per 30 days—together with the notable motion in opposition to Ripple Labs—the present panorama signifies a much less aggressive regulatory method for main gamers like Binance, Ripple, and Gemini.
Following the administration shift, enforcement actions in opposition to these corporations have both been withdrawn or considerably softened.
Paul S. Atkins, the newly appointed SEC chair underneath the Trump administration, has labeled this regulatory shift a “new day” for the cryptocurrency trade.
At the time of writing, the protocol’s native token, AAVE, was buying and selling at $187, having solely surged by 1% following the announcement. However, on a year-to-date foundation, the AAVE token has seen a big 52% drop, with costs presently 72% down from the all-time high of $661 reached in May 2021.
Featured picture from DALL-E, chart from TradingView.com
