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

Price of several tokens related to Ethereum-The projections based on decentralized finances, or DefI, on Tuesday, went after the Securities Commission indicated that it was taking steps internally to become more comfortable than the new sub -sector.

Ethereum has recently changed about $ 2700, which has increased 7.2% last day, said the data provider Co ringecko. Uniswap, Aave and Sky increased by 23%, 16%and 15%, respectively, increased to $ 8, $ 305 and $ 0.90.

On Monday, SEC President Paul Atkins said During a roundtable focused on Washington’s deficiency, DC, that the Agency worked on “exemption for innovation” that made it easier for companies to introduce products on the chain. The Agency also studies the changes in the rules to “provide the necessary accommodation” for entities seeking “management of financial systems,” he said.

“US values ​​of economic freedom, private ownership rights and innovations are found in DNA Defo or decentralized finances, movement,” Atkins added.

As Management tokensUniswap, Aave and Sky allow the owners to participate in the determination of the direction of the associated project, namely voting on the proposed changes of software. In the past are projects like Uniswap thought changes Share the trainers with token owners.
Although the Securities and Exchange Commission once claimed that uniswap management should be classified as security (in threat of foreclosure Last year) the current leadership of the Agency is trying to embark on a more collaborative path.

“Many involvement in the industry left the round table optimistic about what is ahead,” said Jennifer Rosenthal, spokeswoman for the Defiling Fund, a research and advocacy group, said Decipher. “It is encouraging that there is an emphasis on listening and learning from participants in the industry.”

Tokens are under the umbrella of decentralized finances, because their related projects seek to offer financial services, whether it is borrowing or trading, without relying on traditional intermediaries like banks. They use Smart contracts instead.

According to Danny Nelson, analyst of research at the ASSET manager of Bitwise, on Tuesday he traded saints among the reinforcement of heads based in Ethereum, adding that the power of Ethereum “often descends” to other property on the network.

“We see a little closer to the tsunami today,” he said. “Rally also gives traders borrowing against their eth [positions] Multiple drawing collaterals. ”

SpiritDecentralized Bandlings Protocol, allows users to borrow or borrow a crypto currency. The project, which initially made his debut on Ethereum as Ethlend, currently owns about $ 26,166 billion in property, which is on Tuesday more and more time, Defillam data showed.

MimicDecentralized exchange, operates over 36 blockchain. However, among the assets worth $ 5 billion on the protocol, there is $ 3.5 billion on Ethereum. In May, Uniswap facilitated the volume of trading worth $ 92 billion, his fourth best month of 2020.

Sky protocol, before Creator, It is designed primarily about the publication of Stablecoin. Customers are able to lay Ethereum and other property as a collateral for Stanblecoin for Stans Mint Sky, and the project is currently holding property of $ 5.3 billion.

Although the effect of the ethereum can affect the price of the management token, Nelson claimed that the dynamics could be switched after Atkins’ comments.

“Instead of Eth leading his definition ecosystem more, today we see a definition ecosystem of the power of ETH,” Nelson said. “Traders are trying to prices in the future where the usual rails of Ethereum’s balloon on the economy chain in something truly powerful.”

Said Seth Oranburg, a professor of rights at the University of New Hampshire, said Decipher This legislation weighing on the Capitol hill, like the Claus Act, could also become a factor. If the proposal of the law is made by the rules that determine which regulations are subject to the management tokens, it could encourage further participation, he said.

“That kind of clarity will open the possibility of legitimate business,” he said. “I expect to see the explosion of the use of these tokens.”

Edited by James Rubin