Aave Submits Proposal to SEC on Existing Law for DeFi Lending

Aave has submitted a proposal to the Securities and Exchange Commission on how existing law applies to decentralized lending and vaults, putting the treatment of DeFi products at the center of its engagement with the regulator. The submission focuses on lending activity conducted on-chain and vaults. Aave argues that existing law should be applied accurately to these products, saying clarity matters to the sector’s development. Aave is a decentralized finance protocol for lending and borrowing cryptocurrencies without an intermediary. Ripple has separately argued for clearer rules across the crypto industry in its push for an SEC crypto framework .