The US Securities and Exchange Commission (SEC) has officially concluded its investigation into the decentralized finance (DeFi) protocol Aave (AAVE), marking a significant development in the ongoing evolution of regulatory approaches within the cryptocurrency industry. 

Stani Kulechov, the founder and CEO of the Aave protocol, confirmed the end of the four-year investigation in a post on social media, expressing relief and optimism about the future of DeFi.

Aave Founder Celebrates End Of SEC Investigation

In his announcement, Kulechov emphasized the considerable effort and resources invested by the Aave team throughout this process. He stated, “We are finally ready to share that the SEC has concluded its investigation into the Aave Protocol.” 

Highlighting the impact of regulatory scrutiny on DeFi, he added, “This process demanded significant effort… to protect Aave, its ecosystem, and DeFi more broadly.” 

Kulechov expressed hope for a new chapter in which developers can freely innovate and contribute to the future of finance, asserting, “DeFi will win.”

This conclusion is notable against the backdrop of heightened regulatory pressure that DeFi projects have faced in recent years. Under the previous SEC chair, Gary Gensler, the agency made a concerted effort to enforce regulations in the crypto space. 

In 2021, the SEC initiated 19 enforcement actions related to cryptocurrency in just the first nine months. However, recent patterns reveal a substantial shift in the commission’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 cases. 

A New York Times investigation published recently analyzed thousands of government documents and court records, revealing that the SEC has either dismissed, paused, or reduced penalties for a significant majority of active crypto cases since January 20, 2021. 

While Trump’s first term saw an average of one high-profile cryptocurrency case per month—including the notable action against Ripple Labs—the current landscape indicates a less aggressive regulatory approach for major players like Binance, Ripple, and Gemini. 

Following the administration shift, enforcement actions against these companies have either been withdrawn or significantly softened.

Paul S. Atkins, the newly appointed SEC chair under the Trump administration, has labeled this regulatory shift a “new day” for the cryptocurrency industry. 

At the time of writing, the protocol’s native token, AAVE, was trading at $187, having only surged by 1% following the announcement. However, on a year-to-date basis, the AAVE token has seen a significant 52% drop, with prices currently 72% down from the all-time high of $661 reached in May 2021.  

Featured image from DALL-E, chart from TradingView.com 

• Aave price jumped to highs of $200 as cryptocurrencies recorded an uptick on December 8, 2025.
• While market sentiment is weak, bulls could dominate price action toward $300.
• Decentralized finance and overall bullish conditions will be key to the AAVE price.

Aave is in the green on the day as the decentralized finance heavyweight’s token captures renewed investor attention.

On Monday, AAVE traded at $193 at the time of writing, having touched highs of $200 and reflecting a robust recovery from recent dips.

With bullish forecasts for Bitcoin and the broader market, it appears gains position AAVE for a potential explosive growth.

AAVE price gains amid altcoin surge

AAVE has been in a downtrend for over three months and remains constrained.

However, the DeFi token has posted a slight uptick over the past week, and current prices are well above the lows of $147 reached on November 21, 2025.

On Monday, the token climbed to highs of $200 before paring gains to around $193.

The Aave token’s uptick coincides with a broader altcoin bounce on Dec. 8.

As Bitcoin showed resilience above $90k, Ethereum broke above $3,100, Solana touched $136, and Chainlink advanced above $13.

For Aave, gains over the week stood at 17%, coming amid major stablecoin transfers and increased buzz around DeFi growth.

Aave is proving what stablecoin adoption at scale looks like.

→ $5B in USDC current supply on Ethereum V3
→ +138% USDC growth YTD on Ethereum
→ USYC live in Horizon, Aave’s RWA market

All figures from Jan '25 – Dec.

USDC is becoming a collateral layer for the next era of… pic.twitter.com/GkLd6fAyr3

— Circle (@circle) December 5, 2025

On Dec. 5, the Aave lending pools witnessed huge USDT transactions, moves that highlight increased borrowing demand and liquidity.

Analysts see this and whale activity as potential catalysts for further gains.

AAVE price forecast

The current market outlook for cryptocurrencies aligns with broader risk asset and seasonal trends.

December has historically delivered notable gains for investors amid “Santa rallies”.

Aave’s 17% surge in the past week mirrors this outlook, even if it’s still early days.

Investors are also eyeing the Federal Reserve’s anticipated rate cut this week.

Bulls could sparkle above the $200 mark. However, volatility remains a concern, and support levels could be much lower.

From a technical point of view, key indicators point to short-term advantage for Aave bulls.

Price is above the critical resistance and support level at $178.

As can be seen on the chart below, buyers breached this level as the AAVE price pumped to highs of $385 between May and August 2025.

However, declines from the year-to-date peak also saw bears plunge the token’s value past $178 to lows of $147 in November. Prior to this, AAVE had crashed to $128 on October 10, 2025.

This means the token is in a descending channel.

The Relative Strength Index (RSI) reading currently hovers at 52. It’s upsloping and indicative of likely further room for upside movement. Bulls can do this without immediately entering the overbought territory.

Notably, the token recently broke above its 50-day exponential moving average (EMA) as bulls rallied.

This happened as part of a classic bullish confirmation move that has historically preceded significant upside action.

Aave’s daily chart shows the 50EMA is at $201.

Bearish risks, such as a Bitcoin correcting below $90,000, could cap gains at this mark.

However, bulls riding an upward wave could break higher, with $227 and $320 key levels.

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