Ondo Finance, a tokenization specialist, saw its native cryptocurrency rise on Monday following the conclusion of a U.S. Securities and Exchange Commission investigation into the platform. U.S. regulators are now facilitating the tokenization of real-world assets (RWA).
The SEC has wrapped up a “confidential” investigation that began in 2024 under the previous leadership of Gary Gensler, without pursuing any charges, as stated by the Ondo team in an X post.
The investigation focused on whether Ondo’s approach to tokenizing certain real-world assets was in line with federal securities laws and whether the ONDO token could be classified as a security, according to an Ondo spokesperson who spoke with CoinDesk.
“With the investigation concluded, the uncertainty surrounding Ondo and the tokenization of securities has dissipated, indicating a more open path forward for the tokenization of securities,” the spokesperson remarked.
The token rose by nearly 6% in the last 24 hours after the announcement.
Regulatory scrutiny on digital assets and crypto protocols has significantly lessened with Donald Trump’s possible return to the White House, in contrast to the previous administration that industry insiders viewed as antagonistic. New SEC Chairman Paul Atkins has emphasized the importance of tokenization as an innovation in capital markets, stating in a FOX Business interview last week that it has the potential to transform the financial system in the coming years.
