Ethereum Governance Tokens Spike as SEC Backs ‘Innovation Exemption’ for DeFi Projects
The price of Ethereum and several DeFi tokens surged after the SEC indicated a more accommodating approach to decentralized finance. Ethereum rose to approximately $2,700, a 7.2% increase, while Uniswap, Aave, and Sky saw gains of 23%, 16%, and 15%, respectively. SEC Chairman Paul Atkins announced plans for an “innovation exemption” to facilitate on-chain product introductions and rule changes for on-chain financial systems. Governance tokens like Uniswap, Aave, and Sky allow holders to influence project decisions. Trading volumes for Ethereum-based governance tokens were notably high, with analysts suggesting the DeFi ecosystem's strength could now drive Ethereum's performance. Aave holds around $26.166 billion in assets, Uniswap operates with $5 billion, and Sky Protocol has $5.3 billion in assets. Potential legislation like the Clarity Act may further enhance participation in governance tokens.
