SEC ends Biden-era investigation into Ondo Finance without charges, firm says

Ondo Finance said the U.S. Securities and Exchange Commission has closed a confidential, multi-year investigation into the company without filing charges, marking what it described as a "major step forward for tokenized securities in the United States."

The probe, initiated under the Biden administration during a period of heightened digital asset scrutiny, examined whether Ondo's tokenization of real-world assets complied with federal securities laws, and whether the native ONDO token itself should be treated as a security.

According to a blog post from Ondo on Monday, the company fully cooperated and maintained throughout the inquiry that its approach to tokenization aligns with investor protection principles. The firm said the formal SEC notice represents a "meaningful milestone not just for Ondo, but for the broader tokenization industry."

The investigation began in 2024, when the U.S. regulatory environment for digital assets was characterized by crypto exchange failures, speculative tokens, and what Ondo described as "occasionally overbroad enforcement actions." At that time, Ondo had emerged as one of the few firms tokenizing publicly listed equities at scale and was experiencing growing adoption from global investors. "Being early and being successful came with scrutiny," the firm said.

With the probe now concluded, Ondo said it will continue to prioritize innovation, compliance, security, and investor protection.

Ondo's token is up around 5% on Monday following the news, according to The Block's ONDO price page.

A spokesperson for the SEC said the agency does not comment on the existence or nonexistence of a possible investigation.

Washington's tokenization shift

Ondo framed the outcome as part of a broader shift in Washington, where regulators are reassessing approaches to digital asset oversight and reversing or softening several of the prior administration's more aggressive actions.

Tokenization has also moved onto the SEC's formal agenda, with its Investor Advisory Committee evaluating how blockchain-based systems could modernize the issuance, trading, and settlement of public equities.

Ondo also pointed to accelerating market adoption as another sign of momentum, noting that tokenized U.S. Treasuries have become one of the fastest-growing onchain asset categories, and recently launched tokenized equities are showing similar traction.

The company plans to outline the next phase of its roadmap at the Ondo Summit in New York on Feb. 3, 2026, where regulators, policymakers, and traditional finance executives will discuss the firm's vision for what it calls a "new era of onchain finance."

Updated with response from the SEC.