SEC Closes Ondo Finance’s Two-Year Probe With No Enforcement Action, Easing Regulatory Pressure

SEC ends Ondo review and gives the firm clearer ground to expand tokenization work in the United States.

Market interest in tokenized assets grows as major institutions test new systems on established blockchain networks.

Ondo strengthens its regulated operations after acquiring a licensed trading platform and gaining regulatory clarity.

The U.S. Securities and Exchange Commission has closed its two-year review of Ondo Finance without recommending enforcement action. The decision removes a major regulatory barrier for the tokenization firm as it expands its U.S. operations

The agency examined the company’s tokenized U.S. Treasury products and assessed whether the ONDO token fit within existing securities classifications. The review took about two years before the SEC informed the company that the inquiry had ended.

Shift in Oversight and Market Focus

The investigation aligned with a broader shift in the SEC’s approach to digital assets under Chair Paul Atkins. In May, SEC Chair Paul Atkins promised clear crypto rules with focus on guidance instead of quick enforcement actions. The company noted that the agency has reduced its crypto-related inquiries since Atkins took office. This shift included the closure of earlier actions involving several major industry firms. The SEC has instead directed more attention toward the tokenization of traditional financial instruments.

Recent discussions at the SEC’s Investor Advisory Committee meeting highlighted interest in how distributed ledger systems could support the issuance, trading, and settlement of public equities. Participants also explored the possibility of operating tokenized systems under existing market rules while maintaining investor protections. The agency signaled increased focus on regulated entities that issue and manage tokenized assets.

Operational Clarity for Ondo Finance

The result of the review offers Ondo Finance clearer regulatory footing in the United States. The company recently registered as an investment advisor and acquired Oasis Pro Markets. The acquisition added a registered broker-dealer, an alternative trading system operator, and a transfer agent to its structure. These additions positioned the company to expand regulated trading and settlement of tokenized products

The company reported that the outcome helps resolve uncertainty surrounding its U.S. initiatives. The ONDO token saw an increase following the disclosure of the investigation’s end. At the time of reporting, the asset was trading at $0.4861, which was an 8.12% increase in 24 hours. The firm intends to continue its roadmap with its upcoming event in New York at the beginning of 2026, during which industry leaders will talk about the developments in tokenized finance.

Broader Industry Momentum

Tokenization has drawn interest from major financial institutions. Several firms explored tokenization infrastructure using the Avalanche network. The trading in tokenized U.S Treasuries has also been on the rise and new tokenized equities have gained initial momentum. These trends show increasing adoption in the international market. Earlier this year, Ondo Finance launched Ondo Global Markets, offering global access to 100+ tokenized US stocks and ETFs on the Ethereum blockchain.

The conclusion of the Ondo investigation marks another example of the SEC closing reviews related to digital assets. The decision allows the company to continue its work in tokenized financial products under a clearer regulatory environment.