- SEC Chair Paul Atkins’ endorsement of self-custody and innovation in DeFi sparked a strong rally in top tokens Compound, Uniswap, and Aave, signaling a potential shift toward more crypto-friendly regulation.
- His call for updated rules and an “innovation exemption” framework has fueled investor optimism about the future growth of decentralized finance in the U.S.
Tuesday saw crypto DeFi OGs, Compound (COMP), Uniswap (UNI), and Aave (AAVE) experience significant gains in market price. This double-digit gains came on the heels of powerful remarks by U.S SEC chair Paul Atkins.
Paul atkins openly endorsed core DeFi principals during a crypto roundtable focused on regulatory clarity and American ideas.
Speaking at the final Crypto Task Force roundtable of the year, notably, “DeFi and the American Spirit” Atkins delivered to what many DeFi enthusiasts thought was groundbreaking.
He emphasized that liberty, economic freedom, and the right to self-custody of assets are not only foundational to the American ethos but also central to the DeFi ecosystem.
His speech sent shockwaves through the DeFi market. His utterances signaled a potential shift in the SEC’s treatment of the decentralized platform. This is ofcourse a complete opposite of what his predecessor Gary Genslor would have conceived evident with the regulatory hostility.
The right to have self-custody of one’s private property is a foundational American value that should not disappear when one logs onto the internet, said Atkins.
Self-Custody, Innovation, and a New Direction
Atkins’s defense of self-custody, the practice of users managing their own crypto wallets and private keys without third-party intermediaries, was a direct rebuke of previous SEC actions that classified self-custody and DeFi tools as de facto brokerage services.
Under Gensler’s leadership, platforms like Coinbase, Uniswap, and Consensys were subjected to enforcement actions for facilitating such services.
Now, however, Atkins is pushing the SEC to take a more progressive approach. He acknowledged that existing securities laws may be outdated when it comes to rapidly evolving blockchain technologies, and proposed the idea of an “innovation exemption”, a conditional relief framework that could allow both registrants and non-registrants to launch on-chain products without fear of immediate regulatory crackdowns.
We should not allow century-old regulatory frameworks to stifle innovation in technologies that could upend and, most importantly, improve and advance our current, traditional intermediated model,”\ Atkins said.
He also directed the SEC’s staff to review and possibly amend current rules, enabling a more nurturing environment for DeFi development while ensuring compliance and investor protection.
DeFi Tokens React with Explosive Gains
The tokens, as if prescient, moved with an uncanny awareness of the unfolding events. Compound (COMP), Uniswap (UNI), and Aave (AAVE), often referred to as the titan s of the DeFi sector, posted substantial gains as investor sentiment turned sharply bullish.
Compound (COMP) surged over 30% since Monday, breaking through a crucial resistance level at $61 and its 200-day Simple Moving Average (SMA). Analysts now eye the $73 mark as the next significant upside target, provided COMP can hold above current support levels at the confluence of the 50-day and 100-day SMAs.
At the time of press, COMP is swapping hands with $60.59, a 19.95% and 35.48% surge in the past 24 hours and week respectively.
Uniswap (UNI) climbed past the $7.73 resistance, potentially setting up a test of the 200-day SMA and a rally toward the $10 psychological barrier. Maintaining $7.73 as support will be key for any continuation of upward momentum.
At the time of press, UNI is also posting double digit gains after a 17.67% and 24.54% surge in the past 24 hours and week respectively with a $8.37 market price.
Aave (AAVE) also made headlines by reclaiming the $300 psychological level, following a breakout above the $285 resistance. The token registered its largest single-day gain since February 1, and could be poised to test $362, especially if it breaches the upper boundary of its current rising price channel.
Currently, AAVE is still trading on the green at a market price of $312.23. This market value is a result of a 7.60% and an 18.30% surge in the past 24 hours and week respectively.
Notably, as earlier reported by ETHNews, Aave, the porpulary known decentralized lending protocol is ramping up its aggressive bullish moves after taking the crypto market by storm with its 30% surge. Notably this surge took place in just 4 days.