The SEC has concluded its multi-year investigation against Ondo Finance without recommending any charges after examining whether the company's tokenized U.S. government bonds and ONDO token violated securities laws.
As the tokenization of assets becomes mainstream on the SEC's agenda, the decision opens up opportunities for Ondo to expand its operations nationally.
SEC quietly closes the Ondo case
The U.S. Securities and Exchange Commission (SEC) signaled a continuing shift in its enforcement policy after news broke that it had concluded its investigation against tokenization company Ondo Finance.
Although the news became public on Monday, the decision was made at the end of last month.
According to reports, the SEC began an investigation in October 2023, led by former chairman Gary Gensler, to assess whether the company complied with securities laws.
Now, under the current chairman Paul Atkins, the SEC has taken a more crypto-friendly direction. The conclusion of Ondo's investigation reflects its ongoing reversal of several prominent cases. The SEC is now adding Ondo's investigation to the list of closed cases along with those of Coinbase, Ripple, and Kraken.
This move also demonstrates the growing interest of institutions in the potential of asset tokenization.
Tokenization is gaining traction in Washington.
The tokenization of assets, which regulators previously viewed with caution, is now firmly on the SEC's agenda.
Last week, the SEC's Investor Advisory Committee held a panel on how decentralized ledgers can modernize public offerings and trading. It marked a significant shift from the regulatory approach taken in recent years.
This institutional desire reflects the popularity seen in the private sector.
Tokenized U.S. government bonds have emerged as one of the fastest-growing asset classes in the chain. At the same time, early tokenized equity products are beginning to attract interest from global investors.
Ondo, an early player in the tokenization sector, was one of the companies that benefited from this regulatory change. The conclusion of the SEC's investigation removes some uncertainty for the company and other players targeting tokenized real-world assets.
Ondo noted in a blog post that the decision allows it to continue its plans to expand its operations in the United States, supported by the company's acquisition of Oasis Pro, which is a broker-dealer and ATS operator.
The company has also scheduled its annual Ondo Summit event for February in New York. It is expected to showcase new tools and products focused on the tokenization of real-world assets.
