$ETH Ethereum Governance Tokens Spike as SEC Backs ‘Innovation Exemption’ for DeFi Projects

The price of several tokens tied to Ethereum-based projects in decentralized finance, or DeFi, spiked on Tuesday after the Securities and Exchange Commission signaled that it’s taking steps internally to become more accommodative of the emergent subsector.

Ethereum was recently changing hands around $2,700, an 7.2% increase over the past day, according to crypto data provider CoinGecko. Uniswap, Aave, and Sky, were up 23%, 16%, and 15% respectively, rising to $8, $305, and $0.90.

On Monday, SEC Chairman Paul Atkins said during a DeFi-focused roundtable in Washington, D.C., that the agency was working on an “innovation exemption” allowing companies to introduce on-chain products more easily. The agency is also looking at rule changes to “provide needed accommodation” for entities seeking “to administer on-chain financial systems,” he said.

“The American values of economic liberty, private property rights, and innovation are in the DNA of the DeFi, or decentralized finance, movement,”