Crypto Tokens Jump Up to 50% in a Post-Clarity Regulatory Bet

(Bloomberg) -- Crypto tokens tied to trading and tokenization are surging after US regulators moved to expand digital-asset markets despite the failure of landmark crypto legislation in Congress.

Hyperliquid's HYPE token climbed to a record $96 on Monday, taking its market value to above $20 billion. Uniswap's UNI has gained roughly 40% over the past week, while Avalanche's AVAX is up about 47%, Ethena's ENA's up about 50% and Ondo's ONDO rose by roughly 26%.

The gains come after the Securities and Exchange Commission last week granted a five-year exemption allowing qualifying venues to trade tokenized US stocks onchain. The move came just days after the Clarity Act failed to advance in the Senate, leaving regulators to press ahead with parts of the crypto agenda without new legislation. The Commodity Futures Trading Commission is also plunging ahead with its pro-crypto agenda.

"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, chief operating officer of 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."

The rally has been concentrated in tokens linked to the infrastructure of digital-asset markets rather than spread broadly across smaller cryptocurrencies, setting it apart for now from the sweeping gains typically associated with an altcoin boom. Bitcoin climbed to an eight-month high of more than $86,000.

"The rally is occurring amid a broader risk-on shift, with tech equities rising in concert," said Carlos Guzman, 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."

Hyperliquid has been among the strongest performers. Open interest on the decentralized derivatives venue has reached $8.3 billion, according to data site hl.eco, while trading in perpetual futures linked to traditional assets has expanded sharply this year.