SEC Concludes Investigation into Ondo Finance's Tokenization Efforts
The SEC has formally closed its investigation into Ondo Finance, indicating a shift in the regulatory approach to digital asset tokenization in the U.S.
In 2023, the SEC launched an investigation into Ondo Finance, a platform specializing in real-world asset (RWA) tokenization. This inquiry has now concluded without any charges against the company, indicating a potential shift in U.S. regulations concerning on-chain assets.
Ondo Finance confirmed the closure in a blog post, detailing that the investigation looked into whether their tokenization practices for specific RWAs met federal securities laws, along with the classification of the ONDO token itself as a security.
The SEC’s decision reflects a broader change in approach toward RWA tokenization in the U.S.
A New Era of Tokenization in the U.S.
As per a report by Crypto in America, the SEC first initiated the probe in October 2023 during the term of former SEC Chair Gary Gensler, known for his strict regulations on the crypto sector. After Paul Atkins assumed chairmanship of the SEC, several crypto-related investigations, including those involving prominent firms like Coinbase and Ripple, have been resolved.
In its blog, Ondo stated: “When the inquiry began in 2024, the U.S. regulatory landscape for digital assets was marked by uncertainty and excessive enforcement measures.”
Consequently, the conclusion of this SEC investigation marks not only the end of a challenging phase for Ondo but also potentially paves the way for tokenized securities to become essential in the U.S. capital markets.
Ondo further emphasized its commitment to leading the ongoing evolution of finance, asserting: “The future of global finance, including U.S. capital markets, will be on-chain, and Ondo will be at the forefront of this transformation.”
Tokenization Platforms Focused on Global Markets
Most U.S. tokenization platforms predominantly target international customers. Companies like Kraken-owned Backed, specializing in tokenized equities, illustrate this trend.
Alchemy Pay’s chief marketing officer, Ailona Tsik, noted that accessibility to traditional equities from the U.S. is already convenient via established brokerage platforms.
Following the resolution of the SEC probe, it remains uncertain if platforms like Ondo will extend their services to U.S.-based clients. “The reality is that users in the U.S. already have relatively seamless access to traditional equities such as stocks and ETFs through well-established brokerage platforms,” Tsik remarked.
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