The US Securities and Exchange Commission (SEC) concluded its Biden-era probe into DeFi platform Ondo Finance, and whether its tokenized products complied with federal securities laws, without any charges, following the Trump administration’s pro-industry approach and focus on tokenization.
Case Closes: SEC Ends Ondo Finance Probe
On Monday, Ondo Finance announced it had received formal notice that the US SEC’s two-year investigation into the platform, which started during the Biden administration, had concluded in late November with no charges.
The platform now joins the list of crypto companies that have seen their cases and probes dismissed or closed without any enforcement actions this year, including Gemini, Kraken, Ripple, Coinbase, and Uniswap Labs.
The SEC initiated the probe in 2024 to examine whether firms’ tokenization of Real-World Assets (RWA) complied with federal securities laws, the platform explained. Additionally, it sought to determine whether the ONDO token was a security.
“Ondo’s growth and leadership in the emerging tokenization category made us a focus, but not a justified target,” the announcement added. At the time, the US regulatory environment was characterized by a “regulation by enforcement” approach, which led to caution and confusion.
Nonetheless, they “remained steadfast in its conviction that regulated, transparent tokenization models like Ondo’s are not only compatible with investor-protection principles, but can strengthen them.”
To Ondo Finance, this marks a “meaningful milestone” for the broader tokenization industry, which will push innovation, compliance, security, and investor protection forward, as the sector gains momentum and becomes a priority on the federal agency’s agenda.
It’s worth noting that Ondo has solidified its position as a leader in the RWA sector with strategic partnerships, expansions, and the launch of its own Layer-1 blockchain, which aims to bridge the gap between traditional finance and decentralized finance.
As reported by Bitcoinist, the firm aims to advance its mission to “democratize” access to high-quality US financial assets and ensure tokenized assets move seamlessly across major blockchains.
A New Chapter For Tokenized Securities
In the Monday statement, the platform also highlighted that the SEC’s decision reflects a broader shift in US policy, with regulators reassessing the methods used during the Biden era for the crypto industry. Earlier this year, a White House report recognized the sector as foundational to the future of the global financial system and named Ondo Finance among the key players.
Notably, the regulatory agency has added tokenization to its formal agenda. In the SEC’s Investor Advisory Committee meeting last week, the regulatory agency affirmed it is evaluating tokenization to modernize the issuance, trading, and settlement of public equities.
In his remarks, SEC chairman Paul Atkins stated, “Distributed ledger technology and the tokenization of financial assets, including securities, have the potential to transform our capital markets. Our financial markets have long been the envy of the world, and to ensure that they remain so, U.S. firms and investors must have the opportunity to leverage this technology as they lead the future of global capital markets.”
Atkins added that the agency’s role is to enable market participants to operate and innovate under clear guardrails, ensuring that the US markets remain the most dynamic, transparent, and trusted in the world.
“The resolution of the SEC inquiry marks the end of one chapter for Ondo and the beginning of another. Put simply, the time is now for tokenized securities to become a core part of U.S. capital markets. The future of global finance, including U.S. capital markets, will be onchain and Ondo will help lead that transition,” the announcement concluded.
ONDO is trading at $0.48 in the one-week chart. Source: ONDOUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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