The Securities and Exchange Commission (SEC) has ended its regulatory probe into the tokenization giant Ondo Finance without any charges after two years of scrutiny.
Ondo Finance is a tokenization platform that turns real-world assets (RWA) like stocks, funds, real estate, etc. into digital tokens via blockchain technology.
Related: Ondo and Chainlink partner to bring financial institutions onchain
Tokenization not only digitizes assets but also allows for 24/7 trading and fractional offerings, with Ondo Finance emerging as one of the most dominant players in the emerging market.
The platform recently scored a major regulatory win when the SEC probe against it ended without any charges.
During Joe Biden’s term in the White House, the securities regulator led by Gary Gensler went after several leading crypto companies, including Ondo Finance, for alleged securities violations.
In October 2023, the SEC launched an investigation into Ondo Finance for allegedly violating securities laws by tokenizing U.S. Treasury products and the potential classification of ONDO tokens as securities.
But the regulatory body under new chair Paul Atkins closed its two-year probe in November without recommending any charges, journalist Eleanor Terrett reported.
Ondo said it maintained the position that regulated and transparent tokenization models like Ondo’s are not only compatible with investor-protection principles but can strengthen them.
In a recent interview with Fox Business, Atkins said he expected the entire U.S. financial market to migrate to blockchain infrastructure within the next two years.
The move comes amidst digital assets, digitalization, and tokenization of the market, he added.
Ondo Finance also noted that the latest development reflects a “broader shift in U.S. policy” when regulators are reassessing Biden-era approaches to digital assets.