After nearly two years since the U.S. Securities and Exchange Commission (SEC) began investigation on renowned DeFi platform Ondo Finance, the SEC has finally cleared the firm on Monday, December 8th.
The regulatory clarity, which has sparked excitements across the crypto market, follows the SEC’s plans to unlock the promise of tokenization for U.S. capital markets.
According to an official announcement released by Ondo Finance, the investigation, which started in 2024 during the Biden era, has formally been closed by the SEC without filing any charges.
The development, which propels Ondo Finance for broader adoption, also marks a major stepping stone to further bolster the modernization of the U.S. capital markets through blockchain-based infrastructure.
Initially, the investigation began as efforts to ensure if Ondo’s tokenization of real-world assets, including U.S. Treasuries and publicly traded equities, complies with federal securities laws.
Upon its emergence in the crypto industry, Ondo had rapidly entered spotlight following its expansion in the tokenized-Treasury market, hence its high visibility triggered regulatory scrutiny on whether the ONDO token itself should be classified as a security.
SEC moves to expand tokenization in the US market
While the SEC has continued to make crypto-friendly regulations, it has increasingly acknowledged tokenization as a valid avenue to strengthen the U.S. market.
As such, SEC’s latest move to grant Ondo Finance regulatory clarity has fueled momentum around tokenized Treasuries and tokenized equities as global adoption continues to increase.
Notably, the infrastructures promise to offer faster settlement, greater transparency, and broader access for global investors.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team