Engagement between crypto innovators and regulators took a significant step as Ondo Finance presented its vision for tokenizing traditional U.S. securities to the SEC’s dedicated Crypto Asset Working Group.
Accompanied by legal experts from Davis Polk & Wardwell, the discussion centered on adapting established financial regulations for securities represented as digital tokens on blockchain systems, according to an official SEC memorandum.
SEC records indicate Ondo Finance (trading under the ONDO ticker) detailed its proposed operational structure for these tokenized assets. Key discussion points involved critical compliance areas like registration requirements, broker-dealer obligations, market regulation nuances, and state-level corporate law implications.
The firm explored potential avenues like regulatory sandboxes or specific relief measures. These could foster innovation in the digital asset space while ensuring robust investor protections remain paramount.
Representing Ondo, CEO Nathan Allman and Chief Strategy Officer Ian De Bode, alongside legal advisors, made the case for a compliant framework. Their goal is to enable digital versions of traditional assets to function effectively within existing U.S. regulatory boundaries.
Ondo Finance presented various structural models for tokenization. This proactive approach aims to resolve the legal ambiguities that have historically presented challenges for crypto-asset issuers seeking clarity.
This dialogue highlights a critical juncture where established financial frameworks intersect with blockchain innovation, potentially paving the way for broader institutional adoption of digital assets if clear guidelines emerge.
Upcoming SEC Roundtable on Crypto Custody
Separately, the SEC is preparing for an upcoming Crypto Task Force Roundtable scheduled for April 25 in Washington, D.C. This event will delve into essential considerations surrounding crypto asset custody.
The roundtable agenda includes two distinct panel discussions. One will focus on custody services provided by broker-dealers, while the other will address custody solutions tailored for investment advisers and investment companies.
Experts from prominent firms like Fireblocks, Anchorage, Kraken, and BitGo are slated to participate, joined by academics from institutions such as Georgetown and UPenn. The event is accessible to the public via online viewing without prior registration, and in-person attendance is also permitted.