Ondo Finance, a leading tokenization company, recently announced that the U.S. Securities and Exchange Commission (SEC) has closed its two-year investigation. The agency ended the review without recommending any charges. The decision signals a broader shift in the regulator’s approach to digital assets.
SEC Closes Ondo Finance Probe Amid Shift in Crypto Enforcement
The SEC began investigating Ondo Finance in October 2023 under former Chair Gary Gensler. The review focused on whether Ondo followed securities rules while offering tokenized U.S. Treasury products. The agency also examined whether Ondo’s native asset, the ONDO token, should be considered a security. According to a company spokesperson, Ondo received formal notice in late November that the inquiry had been closed.
The investigation lasted nearly two years and ended during a period of change in the SEC’s stance toward crypto enforcement. Notably, the decision to end the probe is part of a larger pullback from aggressive, Biden-era enforcement actions against digital asset firms. Since SEC Chair Paul Atkins took office, the agency has closed most crypto-related investigations. Several major cases, including high-profile actions against Coinbase, Ripple, and Kraken, have also been reversed or dismissed.
SEC Shifts Focus to Tokenization in TradFi
Even as the SEC pulls back from tough actions against crypto firms, it is paying closer attention to tokenization in traditional finance. During a recent Investor Advisory Committee meeting, the SEC hosted a dedicated panel on tokenization. Panelists talked about how blockchain systems could make it easier to issue, trade, and settle public stocks. They also stressed that investors must still be well protected.
Chair Atkins emphasized that distributed ledger technology could likely transform global capital markets. He framed tokenization not as a crypto debate but as a question of market structure and financial innovation.
ONDO Token Rises Amid Regulatory Relief
News of the investigation’s closure immediately boosted market confidence. At the time of writing, the ONDO token rose over 6% in a single day, trading at $0.4879, according to CoinMarketCap data.
For Ondo, the SEC’s decision provides room to grow its presence in the United States. With the investigation behind it, Ondo Finance is moving quickly to strengthen its position in the U.S. financial market. The company mentioned that it has registered as an investment adviser. At the same time, it has also bought Oasis Pro Markets. This platform is a regulated broker-dealer that runs an alternative trading system and acts as a transfer agent.
These moves give Ondo a stronger regulatory base and could help it grow its tokenization services across the U.S. market. Ondo is also preparing for its annual Ondo Summit on February 3, 2026, in New York, where it plans to unveil new services for tokenizing real-world assets. While details are still unknown, the company suggests these new tools will push tokenization beyond digital financial products.