The Securities and Exchange Commission (SEC) has closed a long-standing investigation into Ondo Finance without recommending charges after determining whether U.S. Treasuries and the tokenized ONDO were in violation of securities laws.
As the tokenization of securities is increasing on the SEC's agenda, this decision paves the way for Ondo to expand its operations across the United States.
The SEC quietly closed the Ondo case.
The U.S. Securities and Exchange Commission (SEC) signaled a change in regulatory enforcement approach amid reports that the SEC has closed its investigation into Ondo Finance.
Although the news became public on Monday, the dismissal occurred at the end of last month.
According to reports, the SEC began its investigation in October 2023 under the leadership of former Chair Gary Gensler to determine whether the company complied with securities laws.
Under the leadership of current Chair Paul Atkins, the SEC has moved to support crypto more. The closure of the Ondo investigation represents the dismissal of several high-profile cases. The SEC added Ondo's case to the list of closed cases alongside those of Coinbase, Ripple, and Kraken.
This move also indicates institutional interest in the potential of asset tokenization.
Token creation has attracted attention in Washington.
Tokenization of securities, which was once viewed with caution by regulators, is now clearly on the SEC's agenda.
Last week, the SEC's Investor Advisory Committee held discussions on how distributed ledger technology can modernize the issuance and trading of public securities, marking a shift from the regulatory enforcement stance of the past year.
The institutions' desires align with what is happening in the private sector.
Tokenized U.S. Treasuries have become one of the fastest-growing asset types on the network, while early-stage tokenized equity products are starting to attract interest from investors worldwide.
Ondo, a participant in the early asset tokenization sector, is one of the companies that benefited from this shift. The SEC's closure of its investigation removed the uncertainty for the company and others engaged in real-world asset tokenization.
Ondo stated in a blog post that this decision allows for the continuation of its business expansion plans in the U.S., supported by the acquisition of Oasis Pro, a broker-dealer and ATS operator.
The company is set to host the annual Ondo Summit in New York in February, where new tools and products focused on real-world asset tokenization are expected to be introduced.
