SEC Ends Ondo Probe After Two Years, Clearing Path for U.S. Tokenization Expansion

• SEC ends Ondo probe, closing a two-year review of tokenized Treasuries and ONDO.
• Closure reflects SEC’s broader rollback of earlier crypto enforcement actions.
• Resolution enables Ondo to advance U.S. expansion and prepare new tokenization tools.

The Securities and Exchange Commission has concluded its two-year investigation into Ondo Finance, bringing an end to a review that scrutinized the firm’s tokenization activities and treatment of its ONDO token. The closure, confirmed by an Ondo spokesperson, removes a regulatory issue that had remained unresolved since 2023 and comes as the agency reassesses earlier digital-asset actions carried out under previous leadership.

The inquiry began in October 2023 during the tenure of former SEC Chair Gary Gensler. Investigators examined whether the company followed federal securities laws when issuing tokenized U.S. Treasury products and whether its ONDO token fell under the definition of securities. According to the company, a formal notice that the matter was closed arrived in late November after a review that lasted roughly two years.

The development aligns with a broader change inside the SEC since Paul Atkins became chair. The agency has ended most crypto-related investigations that originated under the prior administration and has withdrawn several prominent enforcement cases, including those involving Coinbase, Ripple, and Kraken. Documents reviewed by Crypto In America indicate that the Ondo decision is part of that broader shift.

SEC Increases Focus on Tokenization Policy

While investigations are being closed, the agency has increased its examination of tokenization in traditional finance. At a panel held during last week’s SEC Investor Advisory Committee meeting, officials discussed ways distributed-ledger systems could streamline the issuance, trading, and settlement of public equities.

Chair Atkins stated in prepared remarks that the tokenization of financial assets, including securities, may impact how U.S. capital markets operate, provided that investor protections remain in place. The industry’s attention coincides with ongoing discussions among market participants, including banks, asset managers, and regulated trading venues, about the operational impact of tokenized instruments.

Ondo Prepares for Broader U.S. Activity

With the investigation resolved, Ondo says it is continuing work tied to its U.S. regulatory footprint. The firm, previously registered as an investment adviser, has completed the acquisition of Oasis Pro Markets, an SEC-registered broker-dealer, alternative trading system operator, and transfer agent.

The company is also preparing for its annual Ondo Summit, scheduled for February 3 in New York, where it plans to outline upcoming tools and products for real-world asset tokenization.