Ondo Finance, a leader in tokenization, saw its native cryptocurrency gain momentum on Monday after the U.S. Securities and Exchange Commission (SEC) concluded its inquiry into the platform. This development marks a significant step as American regulators move to support tokenized real-world assets (RWA).
The SEC wrapped up a “confidential” probe initiated earlier this year under former chairman Gary Gensler’s tenure without filing any charges, according to an announcement from Ondo on X.
The investigation focused on whether Ondo’s process of tokenizing certain tangible assets adhered to federal securities regulations and if the ONDO token itself qualified as a security, an Ondo representative explained to CoinDesk.
“With this investigation behind us, concerns surrounding Ondo and securities tokenization have been lifted,” the spokesperson remarked. “This signals regulatory openness and paves the way forward for securities tokenization.”
The ONDO token responded positively to the news, climbing nearly 6% within 24 hours and currently trading at approximately $0.4844.
Regulatory scrutiny over digital currencies and crypto platforms has notably diminished since Donald Trump’s return to office compared with previous administrations often viewed as adversarial by industry insiders. New SEC Chair Paul Atkins has highlighted tokenization as a transformative innovation for capital markets; during an interview with FOX Business last week, he emphasized its potential to revolutionize financial systems in coming years.