After Wasting Four Years, SEC Ends Yet Another Crypto Investigastion
Analysis
Price Impact
MedThe news presents a mixed bag for aave. the dropping of the sec investigation is a significant bullish catalyst, signaling a softening regulatory environment for 'true defi' protocols. however, the internal governance crisis regarding cow swap fee redirection to aave labs rather than the dao treasury introduces substantial short-term uncertainty and potential for a 'fork', which is highly bearish.
Trustworthiness
HighInformation directly from aave founder stani kulechov and reported regulatory shifts under the new sec chair, paul atkins, with similar investigations dropped for uniswap and ondo finance. the internal crisis is also detailed within the news report.
Price Direction
NeutralWhile the regulatory clarity from the sec is a strong long-term bullish signal for aave and the broader defi sector, the immediate internal governance dispute and the risk of a fork create significant short-term uncertainty and potential selling pressure. these conflicting forces lead to a neutral immediate outlook, with the internal crisis needing resolution for a clear upward trend.
Time Effect
ShortThe regulatory news has a long-term positive effect on aave's standing in the market. however, the immediate governance spat needs urgent resolution, as its outcome (resolution or fork) will dictate aave's price action in the short to medium term.
Original Article:
Article Content:
Cover image via www.flickr.com Read U.TODAY on Google News A four-year probe The bad news Advertisement The SEC has officially dropped its investigation into the Aave protocol. "DeFi has faced unfair regulatory pressure in recent years. We’re glad to put this behind us as we enter a new era where developers can truly build the future of finance," Aave Founder Stani Kulechov said in a recent social media post. A four-year probe The core of the SEC's crypto strategy has been to classify tokens as securities by proving they rely on the "managerial efforts" of a centralized group. HOT Stories Crypto Market Prediction: This Is What Saves XRP From Crashing to Zero, Three Ethereum Levels to Watch After $3,000, Is Shiba Inu Bull Market Bounce Starting Now? Morning Crypto Report: New XRP Pair Goes Live on Binance, Shiba Inu (SHIB) Scores New Coinbase Listing, Cardano Creator Highlights 'New ADA' Top 100 Achievement Ripple Exec Reveals Ambitious Plans for RLUSD Crypto Market Review: Bitcoin (BTC) $90,000 Drop Is Nothing, Ethereum (ETH) Mini-Death Cross Is Bullish, Shiba Inu (SHIB) Bears Are Not in Control After four years of digging, the SEC evidently could not find sufficient evidence of clear securities violations to warrant a lawsuit. Advertisement The regulatory environment in the U.S. has softened significantly in late 2025. You Might Also Like Wed, 09/17/2025 - 16:00 Aave CEO Breaks Silence on Game-changing Upgrade in Q4: Details By Tomiwabold Olajide Since Paul Atkins took over as SEC Chair in early 2025, the agency has shifted away from "regulation by enforcement." Similar investigations into Uniswap and Ondo Finance were also dropped earlier this year. Advertisement The agency is likely deprioritizing cases against "true DeFi" protocols that don't hold user funds directly. The bad news The regulatory news is undeniably bullish, but Aave is currently facing a significant internal crisis that complicates the picture. Aave Labs recently integrated "CoW Swap" into the Aave frontend and began redirecting swap fees (estimated at ~$10 million/year) to themselves rather than the DAO treasury. Token holders are furious, viewing this as a "revenue capture" by the development team that bypasses decentralized governance. If this governance spat isn't resolved, it could lead to a "fork". #AAVE News #Crypto Regulation