Ondo Finance Says Biden-Era SEC Investigation Closed With No Charges

Core Viewpoint - The future of tokenization in the U.S. appears promising for Ondo Finance following the SEC's closure of a lengthy investigation into its operations, which did not result in any charges [1][2]. Group 1: Investigation Details - The SEC's investigation into Ondo was initiated during the Biden administration amid increased scrutiny of digital-asset firms and has now been closed without any charges [2]. - The inquiry began in 2024 under the leadership of then-Chair Gary Gensler, with Ondo being one of the few firms focused on large-scale tokenization of equities [3]. Group 2: Company Position and Market Performance - Ondo cooperated fully during the investigation and maintained that it was not a justified target, emphasizing its commitment to building regulated financial products with secure traditional assets [4]. - The ONDO token, which allows holders to vote on proposals, is currently trading around $0.47, reflecting a 3.7% increase over the past day, although it has seen a 77% decline over the past year from a peak of $214 [4]. Group 3: Regulatory Environment - The SEC's stance on tokenization has evolved since Gensler's resignation, which followed the re-election of U.S. President Donald Trump, indicating a potential shift in regulatory approach [6]. - Under Gensler's leadership, the SEC had previously indicated that cryptocurrencies functioning as synthetic representations of traditional stocks could fall under securities laws, leading to multiple lawsuits against various companies [7][8].