SEC Closes Multi-Year Probe Into Ondo Finance’s Tokenization Products With No Charges

Regulatory Resolution Removes Major Overhang for RWA Issuer as Market Shifts Beyond Gensler-Era Enforcement

TL;DR

• SEC ends its confidential, two-year investigation into Ondo Finance without charges, notifying the firm in late November 2025.
• Probe focused on whether Ondo’s tokenized U.S. Treasuries and native token fell under securities rules.
• Clearance strengthens Ondo’s position as one of the largest regulated issuers in the tokenized RWA sector, now managing more than 100 assets and a $774M fund.

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SEC’s decision to close its Biden-era investigation into Ondo Finance without bringing any enforcement action marks a notable shift for the U.S. tokenization landscape, especially after two years of uncertainty surrounding the firm’s flagship real-world asset products.

The probe, initiated around October 2023 under former SEC chair Gary Gensler, centered on whether Ondo’s tokenized U.S. Treasury offerings and other on-chain financial products should be treated as securities, and whether the project’s ONDO token itself carried characteristics that could classify it as one. Ondo confirmed it received formal notice in late November 2025 that the investigation had concluded. The company said it had cooperated throughout the inquiry and consistently argued it was “not a justified target,” reiterating that its products are built on some of the safest structures in traditional finance and designed with compliance at the core.

A substantial part of the agency’s scrutiny revolved around the mechanics of Ondo’s tokenized funds and the governance of its broader product suite, which now includes more than 100 tokenized assets spanning multiple categories.

Its largest offering—an on-chain short-term U.S. debt fund—holds approximately $774 million, a scale that has made Ondo one of the most visible players in the emerging tokenized RWA sector. Market participants viewed the resolution as a meaningful signal, given that many enforcement actions initiated during the Gensler period have recently been dropped or quietly phased out. Analysts argued the absence of charges reduces legal overhang for compliant tokenization platforms and may encourage additional institutional engagement with RWA products in the United States.

The broader industry response framed the SEC’s closure as both a vindication of Ondo’s regulatory posture and an indicator of shifting attitudes within Washington toward asset tokenization.

Observers noted that the decision arrives during a year in which several previously aggressive investigations have wound down, suggesting a recalibration toward clarity rather than punitive action—especially for firms that openly engage with regulators. Ondo’s token traded around $0.47 after the announcement, rising roughly 3.7 percent over the past day. Industry voices argued that the firm’s cleared status strengthens its competitive advantage at a moment when U.S. institutions are evaluating large-scale tokenization deployments across debt, credit, and money-market products.

This regulatory milestone adds momentum to a rapidly expanding sector already positioning itself as one of the most pragmatic bridges between traditional finance and public blockchain infrastructure, and removes one of the largest uncertainties hanging over one of its key incumbents.

This article has been refined and enhanced by ChatGPT.