Tokens tied to trading venues and asset tokenization ripped higher after U.S. watchdogs took fresh steps to grow digital asset markets even without new laws. Last week, the Securities and Exchange Commission granted a five-year exemption that lets qualifying platforms trade tokenized U.S. equities onchain. The move followed the Senate's decision not to advance the Clarity Act, while the Commodity Futures Trading Commission continues to pursue a pro-crypto agenda.
The shift lit a fire under market plumbing plays. Hyperliquid's HYPE reached an all-time high of $96, taking its market capitalization past $20 billion. Over the past week, Uniswap's UNI climbed roughly 40%, Avalanche's AVAX gained about 47%, Ethena's ENA advanced about 50%, and Ondo's ONDO rose roughly 26%.
Regulators are leaning on powers they already have to shape the rules of the road. "If anything, we're seeing the SEC and CFTC move more aggressively within their existing authority to provide a framework for the sector," said Ayesha Kiani, the chief operating officer at Monarq Asset Management. "That doesn't replace the durability of legislation, but it does give the market greater confidence that the regulatory environment is continuing to move forward rather than reverting to uncertainty."
Momentum also reflects a broader risk-on mood. "The rally is occurring amid a broader risk-on shift, with tech equities rising in concert," said Carlos Guzman, who is GSR's vice president of research. "This risk-on turn followed last week's FOMC meeting where the Fed announced it would hike rates. While hawkish, the move was widely expected and instead appears to have removed some uncertainty about the rate path for the rest of the year."
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This upswing is clustering in the pipes of crypto rather than splashing across smaller tokens. Bitcoin did join in, touching an eight-month high above $86,000. Hyperliquid stands out among the winners: open interest on the decentralized derivatives exchange hit $8.3 billion, based on figures from data site hl.eco, and perpetual futures tied to traditional assets have ramped up this year.
The platform is inching closer to U.S. users too. Payward, the parent of Kraken, announced last week that it plans to bring onchain perpetual futures to U.S. customers, beginning with listings that run on Hyperliquid. And the exemption is already shaping strategy. FalconX's global co-head of markets, Joshua Lim, said the SEC's step "creates a compliant path for automated market makers to provide liquidity into tokenized equities," adding, "We are seeing high-conviction rotations into networks like Avalanche."
Other tokens in the move have different ties to this shift: Uniswap's token is native to the decentralized spot-trading protocol of the same name, while Ondo's coin powers a blockchain platform focused on tokenized real-world assets.
Prices are rising where the rails are being built: exchanges, liquidity mechanisms, and networks enabling tokenized instruments. The policy backdrop matters here, and right now the SEC and CFTC are pushing initiatives that steer activity toward tokenized markets. If you track crypto exposure, note where the strength is coming from and why it's concentrating there, not in the long tail of small caps.
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