SEC’s Closure of Ondo Case Signals New Era for U.S. Tokenized Assets

Ondo Finance has confirmed that the U.S. Securities and Exchange Commission has officially ended its years-long review of the company’s tokenization activities, closing the case without filing any charges - a decision widely viewed as a major shift in how U.S. regulators now approach real-world asset (RWA) tokens.

The investigation, launched quietly in late 2023, centered on two core questions: whether Ondo’s tokenized versions of publicly traded equities violated securities laws, and whether the ONDO token itself should be classified as a security. According to the company, the SEC has now notified Ondo that the matter is closed.

A Break From the Gensler-Era Approach

The probe began under former SEC Chair Gary Gensler, whose tenure was defined by aggressive enforcement across the crypto landscape. But the agency’s posture has changed significantly since Paul Atkins took over as chair, with multiple high-profile cases – including those involving Coinbase, Ripple, and Kraken – quietly wrapped up or dismissed.

Ondo described the early regulatory climate as one dominated by caution and unclear boundaries, particularly for firms experimenting with tokenized versions of traditional financial instruments. At the time, Ondo was one of the only U.S. companies attempting to bring public equities onchain at scale, a position that drew regulatory scrutiny simply for being ahead of the curve.

With the investigation now behind it, Ondo says the outcome marks “the beginning of a chapter where tokenized securities become central to U.S. capital markets,” adding that it expects onchain finance to eventually serve as the foundation for the broader market.

A U.S. Market Still Largely Closed to Tokenized Equities

Despite regulatory momentum, most major tokenization platforms continue to serve primarily non-U.S. clients. Providers such as Backed – owned by Kraken – issue tokenized versions of U.S.-listed stocks and ETFs, but restrict access to customers abroad, particularly in European markets.

Industry executives argue that U.S. investors already enjoy easy access to equities through traditional brokers, reducing domestic demand for onchain equivalents. But with the SEC now signaling a more predictable regulatory environment, the question is whether firms like Ondo will begin opening their tokenized offerings to American users.

A Growing Competitive Landscape in Europe

While U.S. availability remains uncertain, Europe is rapidly becoming a central hub for regulated tokenized securities. Ondo Global Markets secured approval to offer tokenized stocks to European investors in November, and shortly after, Securitize received dual authorization to operate as both an investment firm and a regulated trading and settlement system in the EU.

That designation puts Securitize among the first companies in the world with regulated digital-securities infrastructure spanning both the U.S. and European markets.