SEC meets with Ondo Finance to discuss tokenizing US securities

Ondo Finance met with the U.S. SEC’s Crypto Asset Working Group to present a regulatory framework for tokenizing publicly traded U.S. securities.

The meeting, also attended by lawyers from Davis Polk & Wardwell, focused on how existing financial rules might apply to wrapped, tokenized securities on blockchain networks, according to an SEC memo.

According to SEC documentation, Ondo Finance (ONDO) outlined its proposed structure for tokenized securities, raising issues tied to registration, broker-dealer compliance, market regulation, and state corporate law. 

The firm also discussed potential sandbox arrangements or relief measures that could support innovation while maintaining investor protections.

Ondo’s leadership team — including CEO Nathan Allman and Chief Strategy Officer Ian De Bode — joined legal advisors to argue for a compliant path forward that allows digital representations of traditional assets to operate within U.S. regulatory frameworks.

The proposal included multiple models for how tokenization could be structured, aiming to address legal uncertainties that have long challenged crypto-asset issuers.

Upcoming task force round table

The SEC will host one of its “Crypto Task Force Roundtables” on April 25 in Washington, D.C., focused on key considerations for crypto custody. 

The event will feature two panel discussions: one on custody through broker-dealers and another on custody for investment advisers and investment companies. 

Panelists include representatives from firms like Fireblocks, Anchorage, Kraken, BitGo, and law schools such as Georgetown and UPenn. The event is open to the public with no registration required to view online, and in-person attendance is allowed.