The US financial regulator has given the green light for one of the fastest growing crypto companies. The Securities and Exchange Commission (SEC) has concluded a two-year investigation into Ondo Finance without charges. This decision could have major implications for both the company’s growth and the development of tokenization in the United States.
SEC closes investigation into Ondo without charges
The SEC has officially confirmed that the investigation into Ondo Finance has ended, according to a post by the company on Ultimately, the SEC decided not to take any action.
The decision is a major boost for Ondo Finance. The company is considered a pioneer in the US in the field of tokenization: the digitization of traditional financial products such as government bonds, shares and real estate. These investments can be traded faster, cheaper and more transparently via blockchain technology.
The decision fits into a broader change of course led by the new, pro-crypto SEC chairman Paul Atkins. The regulator previously rolled back legal actions against Ripple, Coinbase and Kraken, among others.
Room for growth of Ondo and tokenization
With the investigation off the table, Ondo finally gets legal clarity. In a post on Ondo now wants to continue building the infrastructure for onchain finance.
The timing of the decision is striking, now that tokenization is being taken more and more seriously on Wall Street and in Washington. SEC Chairman Atkins recently spoke positively about this trend. In an interview with Fox Business, he compared the rise of tokenization to that of the internet. According to him, a fully blockchain-based financial infrastructure could become a reality within a few years.
Traditional financial institutions are also increasingly entering the world of tokenization. For example, tech exchange Nasdaq is working on a rule change that should make it possible to officially list tokenized shares.
ONDO token rises with market sentiment
The ONDO token responded positively to the news. In the past 24 hours, the price rose by 8.6 percent to more than $0.50. The price jump seems to be partly attributable to broader market sentiment: Ethereum (ETH) rose by 7.1 percent. Although Bitcoin (BTC) recorded a slight decline of 3.7 percent, it still supports optimism in the crypto market.
Source: https://newsbit.nl/sec-stopt-onderzoek-naar-ondo-finance-amerikaanse-doorbraak-in-zicht/
