Paul Atkins

Ondo

United

Tornado Cash

The U.S. Securities and Exchange Commission has&nbsp;<a href="https://ondo.finance/blog/tokenized-securities-step-forward" rel="noopener noreferrer nofollow">closed</a> its investigation into&nbsp;<a href="https://bsc.news/post/ondo-ecosystem-deep-dive-onchain-finance-2025" rel="noopener noreferrer nofollow">Ondo Finance</a> without filing any charges. This ends a two year review of the company’s tokenization activities and confirms that the ONDO token will not be treated as a security based on this inquiry. The move settles one of the most closely watched regulatory cases involving real world asset tokenization.
Ondo Finance is known for issuing tokenized versions of U.S. Treasuries and publicly listed equities. It operates in a sector where traditional financial instruments are recorded and settled on public blockchains. This model is sometimes called real world asset tokenization, a process that converts offchain assets into onchain representations.
<h2 id="span-span-strong-what-did-the-sec-investigation-focus-on-strong-span-span">What Did the SEC Investigation Focus On</h2>
The investigation began in 2024 during a period when several crypto firms were facing enforcement actions. At the time, the regulatory environment was marked by caution and unclear expectations. The SEC examined whether Ondo’s tokenized U.S. Treasuries and tokenized equities followed federal securities laws. It also evaluated whether the ONDO token itself should be classified as a security.
Ondo says it cooperated throughout the process. It stated that its tokenization model was designed to work inside existing investor protection standards. The company argued that transparent processes, regulated custody, and clear disclosures provide a structure similar to traditional markets.
Ondo was already a major player in this industry before the inquiry began. It was the first and largest platform issuing tokenized U.S. Treasuries on public blockchains. It was also one of the few companies creating access to publicly listed equities through onchain instruments. Global investors were using these products at increasing scale, and this expansion placed Ondo under closer scrutiny.
<h2 id="span-span-strong-why-did-the-sec-close-the-case-now-strong-span-span">Why Did the SEC Close the Case Now</h2>
The closure of the investigation reflects a wider shift in Washington’s approach to digital assets. Policy attitudes have changed since the early Biden years under the current Trumop administration. Enforcement actions against crypto firms were common during that period, especially after major exchange failures and speculative market activity.
Since Paul Atkins became SEC chairman, several high profile cases have been dismissed or withdrawn.
Examples include:
<ul>
 <li>The SEC lawsuit against Coinbase was dismissed with prejudice in early 2025.</li>
 <li>The case against Kraken was closed with no fines and no required changes to its business.</li>
 <li>Investigations into Robinhood Crypto and&nbsp;<a href="https://bsc.news/post/what-is-uniswap-uni-token-explained" rel="noopener noreferrer nofollow">Uniswap</a> Labs were also dropped.</li>
</ul>
Not all cases have ended. Some, such as the Tornado Cash criminal prosecutions led by the U.S. Department of Justice, continue. One co-founder has been convicted, and another remains at large. This shows that enforcement still applies when money transmission and criminal charges are involved.
However, the overall approach to regulated digital asset markets has changed. Tokenization now appears on the SEC’s official agenda. The agency is studying how tokenized securities could modernize the mechanics of trading, clearing, and settlement.
<h2 id="span-span-strong-a-shift-toward-tokenized-securities-in-u-s-markets-strong-span-span">A Shift Toward Tokenized Securities in U.S. Markets</h2>
<h3 id="span-span-strong-a-clearer-direction-from-regulators-strong-span-span">A clearer direction from regulators</h3>
The end of the Ondo investigation aligns with new discussions about how tokenized securities fit within U.S. capital markets. A tokenized security is a regulated financial instrument recorded on a blockchain. It follows normal securities laws but uses blockchain rails for settlement and record keeping.
The SEC’s Investor Advisory Committee is now reviewing tokenization as part of market modernization. In a recent interview with&nbsp;<a href="https://www.foxbusiness.com/media/atkins-predicts-us-financial-system-may-shift-tokenization-within-couple-years" rel="noopener noreferrer nofollow">Fox Business</a>, Atkins said that fast progress in electronic trading and blockchain is reshaping U.S. finance and that tokenization could become a core part of the market within a few years.This is a different tone from the enforcement-heavy posture seen in earlier years.
<h3 id="span-span-strong-ondo-s-regulated-expansion-in-the-u-s-strong-span-span">Ondo’s regulated expansion in the U.S.</h3>
Ondo strengthened its U.S. presence by acquiring Oasis Pro, a firm with several important licenses. These include:
<ul>
 <li>An SEC-registered broker dealer</li>
 <li>An Alternative Trading System</li>
 <li>A Transfer Agent license</li>
</ul>
These licenses allow Ondo to issue and manage regulated financial instruments and offer secondary trading within the U.S. securities framework. The acquisition gives Ondo the ability to trade a broad list of assets, including equities, corporate debt, asset backed securities, and structured products.
<h2 id="span-span-strong-how-does-the-european-approval-strengthen-ondo-strong-span-span">How Does the European Approval Strengthen Ondo</h2>
Ondo also&nbsp;<a href="https://bsc.news/post/ondo-eu-tokenized-stocks" rel="noopener noreferrer nofollow">received</a> approval from Liechtenstein’s Financial Market Authority, last November, to offer tokenized stocks and ETFs across the entire European Economic Area. Liechtenstein’s passporting rules allow this license to extend to all 30 EEA countries.
This allows Ondo to:
<ul>
 <li>Offer tokenized stocks and ETFs to more than 500 million people</li>
 <li>Operate under one unified regulatory standard for all EEA markets</li>
 <li>Use standard investor protections without creating new frameworks</li>
 <li>Provide onchain settlement inside existing legal boundaries</li>
</ul>
European regulators treat tokenized financial instruments as traditional securities. The token is only a digital wrapper around an existing regulated product. This structure creates clarity for firms building these products.
Ondo already had more than $1.866 billion dollars in total value locked and more than one $150 million in trading volume. The new approval expands its reach from crypto native users to the broader retail investing public in Europe.
<h2 id="span-span-strong-why-the-ondo-investigation-matters-to-the-tokenization-sector-strong-span-span">Why the Ondo Investigation Matters to the Tokenization Sector</h2>
The end of the SEC inquiry provides a real world example of how tokenization can operate inside existing rules. Ondo used public blockchains but paired them with standard financial protections. This shows that tokenized securities can fit within securities laws when designed correctly.
The decision also reduces uncertainty for other firms working on tokenized U.S. Treasuries, tokenized money market funds, and tokenized equities. Platforms that operate within investor protection standards now face a more predictable regulatory environment.
The closure reinforces a view that the U.S. policy direction is shifting from strict enforcement toward structured oversight. It cannot be described as permissive, but it is clearer than it was in 2023 and 2024.
<h2 id="span-span-strong-what-comes-next-for-ondo-finance-strong-span-span">What Comes Next for Ondo Finance</h2>
Ondo says it is preparing for the next phase of its roadmap. The company will host the Ondo Summit in New York on February 3, 2026. It plans to bring together regulators, policymakers, and finance leaders to discuss its new set of tokenization tools.
With approvals in both the United States and Europe, Ondo now holds a regulatory footprint across the two largest capital markets in the world. The firm can issue, trade, and manage tokenized securities across both regions. This creates operational continuity that most tokenization platforms do not yet have.
The company says it will continue to focus on regulated growth, security standards, and investor protections as it expands.
<h2 id="span-span-strong-conclusion-strong-span-span">Conclusion</h2>
The SEC has closed its investigation into Ondo Finance without filing charges. The inquiry reviewed the firm’s tokenized asset products and evaluated whether the ONDO token qualified as a security. The outcome provides regulatory clarity for Ondo and delivers a measurable example of how tokenized securities can operate within U.S. law.
With new approvals in the European Economic Area, a regulated presence in the United States, and an established track record in tokenized U.S. Treasuries and tokenized equities, Ondo is positioned to operate within the regulatory frameworks of major markets.&nbsp;
<h2 id="span-span-resources-span-span">Resources</h2>
<ol>
 <li><a href="https://ondo.finance/blog/tokenized-securities-step-forward" rel="noopener noreferrer nofollow">Ondo Finance statement</a>:&nbsp;Case Closed: Clearing the Way for Tokenization</li>
 <li><a href="https://www.foxbusiness.com/media/atkins-predicts-us-financial-system-may-shift-tokenization-within-couple-years" rel="noopener noreferrer nofollow">Report by Fox Business</a>:&nbsp;Atkins predicts US financial system may shift to tokenization within a 'couple of years’</li>
 <li><a href="https://x.com/OndoFinance" rel="noopener noreferrer nofollow">Ondo Finance on X</a> : Posts (December 2025)</li>
 <li><a href="https://ondo.finance/blog/ondo-eu-regulatory-approval" rel="noopener noreferrer nofollow">Ondo Finance Announcement</a>:&nbsp;Ondo Secures EU Regulatory Approval for Tokenized Stocks and ETFs</li>
 <li><a href="https://ondo.finance/blog/ondo-acquires-oasis-pro" rel="noopener noreferrer nofollow">Announcement</a>:&nbsp;Ondo Finance Completes Acquisition of Oasis Pro to Accelerate U.S. Tokenized Securities Innovation</li>
</ol>

US SEC Ends Ondo Finance Case With No Charges

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