SEC Ends Ondo Probe With No Charges as Tokenization in Focus

The Securities and Exchange Commission (SEC) has ended its investigation into tokenization firm Ondo Finance without recommending charges, Crypto In America reported. The probe reviewed Ondo’s tokenized U.S. Treasury products and the status of the ONDO token under U.S. securities laws.

SEC Probe Focused on Treasury Tokenization

According to a recent report, the SEC began the investigation in October 2023 under former Chair Gary Gensler. It looked into whether Ondo complied with securities rules in tokenizing U.S. Treasury products. It also examined whether ONDO tokens constitute securities.

A spokesman for Ondo said the company was formally notified in late November that the investigation was terminated. The review took about two years. The closing represents the latest retrenchment from a Biden- era enforcement strategy against digital asset firms.

The agency has shut down the majority of investigations that had emanated from crypto since SEC Chair Paul Atkins came in, the report added. The SEC. has also reversed a number of major cases. Those include enforcement actions against Coinbase, Ripple and Kraken.

The move comes as the SEC ramps up its focus on tokenization for conventional finance. The regulator held a panel at its Investor Advisory Committee meeting last week. The conversation turned to how tokenization could impact the issuance, trading and settlement of public equities, while still preserving investor protections.

As the news circulated, ONDO moved higher. As of press time, the token was trading at $0.4879, up by 6.12% over the past day.

Atkins Highlights Tokenization as Markets Shift

Atkins suggested that distributed ledger technology and tokenization of financial assets, including securities, were poised to revolutionize capital markets. In his prepared remarks, he described tokenization as an issue of market structure. The comments marked a departure from common crypto disputes to concrete financial applications.

The end of the investigation paves the way for Ondo to expand its U.S. operations, according to a statement. The company cited its registration as an investment adviser. It also pointed to its acquisition of Oasis Pro Markets.

Oasis Pro Markets is said to be an SEC-registered broker-dealer. It is also named as an alternative trading system operator and a transfer agent. The moves could bolster its U.S. ambitions, Ondo said.

The company is due to hold its annual Ondo Summit on February 3 in New York. Ondo plans to unveil new services for tokenizing physical assets at the event. The company has not provided full information about those plans.