The SEC has completed its multi-year investigation into Ondo Finance without recommending any charges, after examining whether the tokenized U.S. Treasury bill and ONDO token of the company violated securities laws.
As equity tokenization rises on the SEC's agenda, the decision paves the way for Ondo to expand its operations nationwide.
SEC quietly closes Ondo case
The U.S. Securities and Exchange Commission (SEC) indicated a lasting shift in its enforcement posture after news broke that it had concluded its investigation into tokenization company Ondo Finance.
Although the news became public on Monday, the closure took place at the end of last month.
According to reports, the SEC began the investigation in October 2023, led by former chairman Gary Gensler, to assess whether the company complied with securities laws.
Now, under current chairman Paul Atkins, the SEC has taken a more pro-crypto direction. The closure of the Ondo investigation illustrates the ongoing withdrawal from multiple high-profile cases. The SEC is now adding the Ondo investigation to the list of closed cases, alongside those of Coinbase, Ripple, and Kraken.
The move also demonstrates the increasing institutional interest in the potential of asset tokenization.
Tokenization is gaining momentum in Washington
Equity tokenization, once viewed cautiously by regulators, is now firmly on the SEC's agenda.
Last week, the SEC's Investor Advisory Committee held a panel on how distributed ledgers can modernize public equity issuances and trading. It marked a significant shift from the enforcement-oriented stance of recent years.
This institutional interest reflects the traction seen in the private sector.
Tokenized U.S. treasury securities have become one of the fastest-growing on-chain asset categories. Meanwhile, early tokenized equity products are starting to attract interest from global investors.
Ondo, an early participant in the tokenization sector, was among the companies that benefited from this regulatory shift. The closure of the SEC investigation now removes a degree of uncertainty for the company and for others pursuing tokenized real-world assets.
Ondo said in a blog post that the decision enables it to proceed with plans to expand its U.S. operations, supported by its acquisition of Oasis Pro, a broker-dealer and ATS operator.
The company also plans to host its annual Ondo Summit in New York in February. There, they are expected to present new tools and products aimed at real-world asset tokenization.
