CMC News

$ONDO Jumps 5% as #SEC Closes Tokenization Probe

Federal regulators have terminated an investigation into Ondo Finance without filing charges, the real-world asset platform announced Monday. The Securities and Exchange Commission closed a confidential probe launched in October 2023 under former Chair Gary Gensler.

The investigation examined whether Ondo's tokenization business complied with securities laws. Regulators also evaluated whether the company's $ONDO token qualified as a security requiring registration with federal authorities.

Ondo specialized in tokenizing publicly traded equities during a period when few competitors offered similar services. The New York-based firm attracted regulatory scrutiny as international investors increasingly used its platform for blockchain-based access to traditional assets.

The company cooperated fully with SEC requests throughout the multi-year review. Ondo provided documentation of compliance procedures and maintained that its approach aligned with investor protection standards required under federal law.

$ONDO gained approximately 5% Monday following the announcement. The price increase signals investor confidence in the company's regulatory standing and optimism about growth prospects for the broader #tokenization sector.