SEC and Ondo Finance Discuss Tokenizing US Securities

The U.S. SEC’s Crypto Asset Working Group met with Ondo Finance to discuss regulatory frameworks 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 a statement from the SEC, Ondo Finance outlined its proposed framework for tokenized securities, raising concerns regarding registration, broker-dealer compliance, market regulation, and state corporate law. The firm also discussed potential pilot programs or relief measures that could support innovation while safeguarding investor interests.