$ETH Several Ethereum Tokens Surge as SEC Promotes 'Innovation Exemption' for DeFi Projects

On Tuesday, the prices of several tokens linked to decentralized finance projects, or DeFi, based on Ethereum surged after the U.S. Securities and Exchange Commission (SEC) indicated that it is taking internal steps to become more accommodating to this emerging subsector.

Ethereum was recently trading around $2,700, after a 7.2% increase in the last day, according to cryptocurrency data provider CoinGecko. Uniswap, Aave, and Sky rose 23%, 16%, and 15% respectively, reaching $8, $305, and $0.90.

On Monday, SEC Chairman Paul Atkins stated during a roundtable focused on DeFi in Washington, D.C., that the agency was working on an "innovation exemption" that would allow companies to introduce on-chain products more easily. The agency is also examining changes to the rules to "provide the necessary accommodation" for entities looking to "manage on-chain financial systems," he added.

"American values of economic freedom, private property rights, and innovation are in the DNA of the DeFi movement, or decentralized finance," Atkins added.

As governance tokens, Uniswap, Aave, and Sky allow holders to participate in determining the direction of their associated project, primarily through voting on proposed software changes. In the past, projects like Uniswap have considered changes to share protocol fees with token holders.