SEC Ends Investigation Into Tokenization Platform Ondo Finance

Quick Breakdown

• SEC drops Ondo probe as agency pivots toward blockchain, tokenization, and modernized market infrastructure.
• Ondo Finance advances its advisory role with the SEC, submitting a comprehensive tokenization roadmap for future policy frameworks.
• Firm preparing major February 2026 Summit, unveiling new tokenization tools, products, and market-ready systems.

SEC Ends Ondo Probe Signalling Softer Crypto Stance

The Securities and Exchange Commission (SEC) has officially closed its confidential investigation into Ondo Finance, which it began more than a year ago, and it did so without charges being filed.

This investigation was initiated in 2024 under the leadership of former SEC chair Gary Gensler, during a time when Ondo Finance noted there was increased scrutiny on crypto and blockchain-based companies.

The inquiry sought to determine whether Ondo’s tokenization of US Treasuries and other real-world assets (RWAs) was in compliance with US securities laws and whether its native ONDO token should be classified as a security.

The company mentioned in a public statement that when the investigation began, discussions around policy were mostly focused on speculative tokens and the fallout from the collapse of several major crypto exchanges.

Despite being swept up in this broader enforcement effort, Ondo continued its commitment to creating tokenized products based on some of the most secure traditional financial assets.

The company stated that it fully cooperated with regulators during the inquiry, reiterating that its tokenization framework was designed with investor protection and market innovation in mind.

This stance by Ondo now aligns with a shifting regulatory landscape at the SEC under its current Chair, Paul Atkins, whose leadership has been characterized by the dismissal of several significant crypto cases that had originated under the previous Biden administration.

A number of these cases had defined the earlier period of “regulation by enforcement,” yet the outcomes following the administration change unfolded very differently.

One of these is the long-running lawsuit against Coinbase, which was dismissed in February 2025, marking the end of nearly two years of debate over whether the exchange operated as an unregistered securities platform.

Kraken faced a similar fate shortly after, with the SEC initially suing it in November 2023 for allegedly running an unregistered exchange. A judge had dismissed most of Kraken’s motion to dismiss the case in August 2024, but the SEC unexpectedly dropped the charges in March 2025.

Ripple’s multi-year legal battle also reflected this shift. The SEC’s lawsuit in December 2020 over a $1.3 billion XRP sale evolved through the July 2023 ruling that divided XRP’s legal treatment, and ultimately ended in a settlement when both sides withdrew their appeals in August 2025.

Atkins’ statement made it clear that these changes are intentional. In a recent Fox News interview, he described the previous years under the Commission as a time when “The trouble that we’ve seen here over the past few years is that the SEC historically was never necessarily at the vanguard of pushing innovations.”

His remarks were paired with a broader acknowledgment that US financial markets might be on the verge of significant blockchain adoption in the coming years, especially as more consumers shift to using digital wallet solutions for fiat-to-crypto onramp settlement.

SEC Signals Shift Toward Tokenization and Blockchain

Atkins emphasized that tokenization is now a key focus for the agency. This focus signals a future where traditional finance could integrate smoothly with digital asset banking.

In this renewed regulatory environment, Ondo Finance, now a registered investment adviser with the SEC, used the announcement of the probe’s conclusion to reaffirm its tokenization mission.

The company stated that “the path is now clearer than ever for tokenized Treasuries and tokenized equities to become core components of U.S. capital markets. The future of global finance will be on-chain, and Ondo will help lead that transition.”

Ondo Advances Tokenization Roadmap

Following the end of the investigation, Ondo took a notable step by submitting its “Roadmap for Tokenized Securities” to the SEC on December 4, 2025. This detailed proposal aims to influence how regulators design tokenization policies moving forward.

Ondo Finance roadmap filing. Source: US SEC

The roadmap argues that tokenization should not be restricted to a single legal or technical model. Instead, Ondo calls for the SEC to adopt a flexible framework that accommodates multiple approaches, including direct registration of tokenized securities, tokenized ownership interests for securities held in the Depository Trust Company (DTC), or the issuance of digital native securities tied to traditional entitlements.

In practical terms, Ondo’s proposals urge the SEC to support both issuer-led and intermediary-led tokenization. It also advocates for tokenized securities to be allowed on public, permissionless, or hybrid blockchains. This kind of flexibility is essential for creating an effective crypto onramp.

Additionally, Ondo seeks targeted regulatory relief, such as no-action letters or exemptions, for tokenized products linked to DTC-held securities or managed by transfer agents.

Ondo Finance views these suggestions as a necessary modernization of existing securities laws. The company believes tokenization is an evolutionary step that could enhance ownership rights, speed up securities settlements, broaden investor access, and ultimately help the US move its capital markets infrastructure onto blockchain technology.

Despite the ongoing regulatory scrutiny, Ondo’s commitment to advancing tokenization remained steadfast as the firm continued to expand its capabilities through strategic partnerships and initiatives.

Notably, Ondo partnered with Chainlink to bring financial institutions on-chain by integrating Chainlink’s oracle network, which provides secure, real-time financial data, such as dividends and price feeds, essential for accurate tokenized equity valuations.

With its eyes set on the future, Ondo is preparing for its annual Summit in New York on February 3, where it is expected to unveil new products and tools for advancing the tokenization of real-world assets.

Conclusion

The partnership between Ondo and the SEC’s Investor Advisory Committee highlights a shared vision of innovation balanced by regulatory foresight.

SEC Commissioner Hester Peirce emphasized this balance, stating that “tokenization cannot reach its full potential without legal clarity.”

Her statement highlights the critical relationship between progressive regulation and the growth of tokenized assets, underscoring that regulatory certainty is essential for this technology to thrive within the traditional financial system.