SEC Drops Ondo Finance Probe – Is the Biden-Era Crypto Crackdown Finally Over?
Regulatory winds are shifting. The Securities and Exchange Commission just closed its investigation into Ondo Finance without pressing charges—a move that’s sending shockwaves through crypto circles.
The Signal Everyone Missed
For months, the SEC’s enforcement division had Ondo in its crosshairs. The probe centered on whether the firm’s tokenized Treasury offerings crossed regulatory lines. Then, radio silence. No lawsuit, no settlement, just a formal notice that the case was dead. It’s the kind of quiet exit that speaks volumes.
A Pattern or a Pause?
This isn’t an isolated event. The agency has quietly shelved several high-profile crypto investigations in recent months. Some see a strategic retreat; others call it regulatory exhaustion after years of aggressive—and often clumsy—enforcement. One Wall Street veteran quipped, 'The SEC finally realized you can’t regulate what you don’t understand, and they’ve moved on to easier targets—like your 401(k).'
What It Means for Your Portfolio
For builders, it’s a green light. Projects working on real-world asset tokenization can breathe easier. For traders, it’s a bullish signal—regulatory uncertainty has been the single biggest anchor on crypto valuations. When the watchdogs stand down, capital floods in. Just don’t expect the party to last. In Washington, policy shifts faster than a memecoin pump.
The door isn’t open, but the lock might be broken. The SEC’s retreat suggests a new reality: crypto isn’t going anywhere, and neither are the profits. The question now is who blinks next.
Ondo Joins Coinbase, Kraken, and Co. as SEC Closes Key Crypto Investigations
The investigation began in 2024 during a period of heightened scrutiny of digital-asset firms and remained confidential until its resolution. The company said it fully cooperated throughout the process.
At the time the inquiry was opened, Ondo was emerging as one of the earliest and largest platforms for tokenized U.S. Treasuries and one of the few firms working toward large-scale tokenized access to publicly listed equities.
The company was also seeing rapid adoption from international investors, placing it squarely within the SEC’s enforcement focus during a period shaped by exchange bankruptcies, retail speculation, and regulatory uncertainty.
The closure of the Ondo investigation comes as Washington indicates a broader recalibration of its crypto policy posture following the appointment of Paul Atkins as SEC chair.
Paul Atkins was sworn in as SEC Chairman on Monday, and is expected to have a private ceremony with President TRUMP at the Oval Office today.#PaulAtkins #SECChair https://t.co/lqyUZN3B7H
Since his takeover, the agency has moved to unwind several of the most aggressive crypto cases launched during the Biden years.
The SEC’s landmark lawsuit against Coinbase, filed in 2023 over allegations that the exchange operated as an unregistered securities platform, was dismissed with prejudice in February 2025.
A similar enforcement case against Kraken, also alleging unregistered exchange and broker activities, was closed a month later with no fines, no admissions of wrongdoing, and no required business changes.
The @SECGov agrees to dismiss its lawsuit against @krakenfx, dropping all charges without penalties or operational changes. #CryptoRegulations #Kraken #SEChttps://t.co/dH1nPi6VFK
Also, in February, the SEC shut down its investigation into Robinhood’s crypto unit without taking enforcement action, and scrutiny of Uniswap Labs was quietly dropped as well.
Not all Biden-era crypto cases have disappeared. Criminal proceedings brought by the U.S. Department of Justice remain active in the Tornado Cash case.
Co-founder Roman Storm was convicted in August for conspiring to operate an unlicensed money-transmitting business and now faces a potential prison sentence, while fellow co-founder Roman Semenov remains at large.
Although Treasury sanctions against the Tornado Cash protocol itself were lifted earlier this year following an appellate ruling, the individual prosecutions continue.
Ondo Brings Tokenized U.S. Stocks to Over 500 Million Investors Worldwide
Ondo’s regulatory clearance also comes as tokenization moves deeper into regulated financial markets.
In September, the company launched Ondo Global Markets, a platform offering tokenized access to more than 100 U.S. stocks and ETFs for eligible non-U.S. investors across Asia-Pacific, Africa, and Latin America.
Ondo opens tokenized U.S. stocks and ETFs to global users via Ethereum, with real-time pricing and DeFi compatibility built in.#ondo #rwa #tokenizationhttps://t.co/F7dKdEShfH
The service runs on ethereum and is expanding to BNB Chain, Solana, and its own Ondo Chain, with tokenized securities backed one-to-one by underlying assets held at U.S.-registered broker-dealers.
That international expansion accelerated in November when Liechtenstein’s Financial Market Authority granted Ondo approval to offer tokenized stocks and ETFs across the European Economic Area under the MiCA regulatory framework.
The approval positions the company to serve more than 500 million retail investors across 30 European countries through passported authorization.
At the infrastructure level, Ondo has also expanded its tokenized treasury-backed yield product, USDY, to the stellar blockchain.
The integration, announced in September at the Stellar Meridian conference in Rio de Janeiro, allows Stellar users to access on-chain yield tied to U.S. government debt through a global payments-focused network.
Meanwhile, the SEC itself has begun publicly examining how tokenization could modernize traditional securities markets.
The SEC is weighing an “innovation exemption” to boost tokenization, just as the House passes a landmark stablecoin bill reshaping US crypto policy.#Tokenization #CryptoPolicy https://t.co/za9zOMVvfm
The agency’s Investor Advisory Committee is now studying how digital issuance, trading, and settlement could reshape equity infrastructure, a marked shift from the enforcement-first approach that dominated earlier policy.
