Leading DeFi governance tokens including Uniswap (UNI), Aave (AAVE), and Sky (SKY) surged following a U.S. Securities and Exchange Commission announcement exploring an ‘innovation exemption’ for decentralized finance projects. The proposed regulatory flexibility aims to reduce barriers for on-chain financial products, signaling a shift toward collaborative oversight frameworks.
Token prices reacted strongly to the regulatory development, with Uniswap gaining 23%, Aave rising 16%, and Sky climbing 15% intraday. The broader Ethereum ecosystem similarly benefited, as ETH increased 7.2% to approximately $2,700. This upward movement enhanced collateral availability across DeFi lending protocols amid heightened trading activity.
Concurrently, Aave’s total assets under management reached a record $26.166 billion, reflecting increased liquidity and user engagement. Market participants anticipate further regulatory clarity from legislative initiatives like the proposed Clarity Act, which could define governance token frameworks and encourage institutional participation in decentralized finance.