Ondo Finance SEC Probe Ends, No Charges, Boosting Tokenized Assets

• ONDO Finance concludes SEC investigation with no charges pursued.
• The SEC reviewed Ondo’s tokenized U.S. Treasury products and ONDO token.
• The company plans US expansion and new services following investigation closure.

The Securities and Exchange Commission (SEC) has concluded its investigation into tokenization company Ondo Finance, deciding not to pursue any charges, according to Crypto In America. The investigation focused on Ondo’s tokenized US Treasury products and the regulatory status of the ONDO token under US securities laws.

According to a recent report, in October 2023, the SEC initiated its inquiry during the tenure of former Chair Gary Gensler. The issue under investigation was whether Ondo complied with securities regulation in tokenizing U.S. Treasury products and whether ONDO tokens qualify as securities.

Ondo Finance Receives SEC Closure Notice After Two Years

A spokesperson for Ondo Finance confirmed the formal closure of the investigation at the end of November. The review took about two years. The ruling is the most recent change in enforcement approach by the Biden administration on the companies dealing with digital assets.

The report also indicated that most of the cryptocurrency-related investigations that had been commissioned during the previous tenure of SEC Chair Paul Atkins have been terminated by the SEC. Moreover, the agency has changed a number of major cases, such as enforcement steps towards Coinbase, Ripple, and Kraken.

This movement follows an intensification of interest shown by the SEC in the tokenization of traditional finance. In the previous week, the regulator held a panel at its Investor Advisory Committee meeting where the discussion revolved around how tokenization could influence the issuance, trading, and settlement of public equities and at the same time provide protections to investors.

Also Read: ONDO Weekly Chart Stays Bearish With Only Long-Term Buyers Eyeing $1.2042

As the news spread, the value of ONDO surged. As of press time, the token is currently trading at $0.4844, an increase of 6.26% in the last 24 hours.

Tokenization Seen as Key to Financial Market Structure Change

According to Atkins, the technology of distributed ledgers and the tokenization of financial instruments such as securities would revolutionize capital markets. In his prepared statements, he termed tokenization as a problem of market structure. These remarks marked the beginning of a new trend in crypto discussions of financial practical applications.

As per a statement, the end of the investigation puts the way clear for Ondo to expand its operations in the United States. The firm emphasized its status as an investment advisor and its purchase of Oasis Pro Markets.

Oasis Pro Markets is allegedly a Securities and Exchange Commission-registered broker-dealer and an operator of alternative trading systems and a transfer agent. Ondo Finance believes these actions can enhance its aspirations in the US market.

Source: ONDO Finance

The company will also hold its annual Ondo Summit on February 3 in New York, during which it plans to launch new physical asset tokenizing services. However, Ondo has not revealed full information on these plans.

Also Read: SEC Chairman Predicts Tokenisation Will Transform U.S. Financial Markets