Ethereum-based governance tokens saw a significant rise after SEC Chair Paul Atkins announced plans for an 'innovation exemption' aimed at facilitating the development of DeFi projects. Following a DeFi-focused roundtable that generated optimism within the industry, tokens like Uniswap, Aave, and Sky experienced notable increases in trading volumes, contributing to a 7.2% rise in Ethereum's price, which hovered around $2,700. Atkins emphasized the importance of innovation in the DeFi space, stating that the SEC is looking to accommodate entities introducing on-chain products. Uniswap, Aave, and Sky give token holders governance rights, and the SEC's previously more stringent stance regarding governance tokens seems to be shifting towards collaboration. Experts are hopeful that upcoming legislation, such as the Clarity Act, might further boost participation in the governance token sector, potentially leading to an explosion in legitimate business activities within this area.

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