SEC ends Ondo probe, marking biggest regulatory win yet for tokenization

The Securities and Exchange Commission (SEC) has ended its regulatory probe into the tokenization elephantine Ondo Finance without immoderate charges aft 2 years of scrutiny.

Ondo Finance is a tokenization level that turns real-world assets (RWA) like stocks, funds, existent estate, etc. into integer tokens via blockchain technology.

Related: Ondo and Chainlink spouse to bring fiscal institutions onchain

Tokenization not lone digitizes assets but besides allows for 24/7 trading and fractional offerings, with Ondo Finance emerging arsenic 1 of the astir ascendant players successful the emerging market.

The level precocious scored a large regulatory triumph erstwhile the SEC probe against it ended without immoderate charges.

During Joe Biden's word successful the White House, the securities regulator led by Gary Gensler went aft respective starring crypto companies, including Ondo Finance, for alleged securities violations.

In October 2023, the SEC launched an probe into Ondo Finance for allegedly violating securities laws by tokenizing U.S. Treasury products and the imaginable classification of ONDO tokens arsenic securities.

But the regulatory assemblage nether caller seat Paul Atkins closed its two-year probe successful November without recommending immoderate charges, writer Eleanor Terrett reported.

Ondo said it maintained the presumption that regulated and transparent tokenization models similar Ondo’s are not lone compatible with investor-protection principles but tin fortify them.

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In a caller interrogation with Fox Business, Atkins said helium expected the full U.S. fiscal marketplace to migrate to blockchain infrastructure wrong the adjacent 2 years.

The determination comes amidst integer assets, digitalization, and tokenization of the market, helium added.

Ondo Finance besides noted that the latest development reflects a "broader displacement successful U.S. policy" erstwhile regulators are reassessing Biden-era approaches to integer assets.