Aave (aave) 
Ondo Finance Engages SEC on Regulatory Framework for Tokenized Securities
Ondo Finance recently met with the U.S. Securities and Exchange Commission (SEC)’s Crypto Asset Working Group to propose a regulatory framework for tokenizing publicly traded U.S. securities. The discussions aimed to address how existing financial regulations could apply to blockchain-based, wrapped tokenized securities.
Key Focus Areas of the Meeting
The meeting, which included legal representatives from Davis Polk & Wardwell, revolved around several critical topics. According to an SEC memo, Ondo Finance outlined its proposed structure for tokenized securities, highlighting compliance considerations related to:
- Registration requirements
- Broker-dealer compliance
- Market regulation
- State corporate laws
To foster innovation while ensuring investor protection, the firm also explored potential sandbox arrangements or relief measures that could provide an environment for experimenting with tokenized assets within regulatory boundaries.
Ondo’s Leadership Advocates for Compliance
Ondo Finance’s leadership team, including CEO Nathan Allman and Chief Strategy Officer Ian De Bode, collaborated with legal advisors to present their case. Their goal was to establish a compliant framework that allows digital representations of traditional assets to operate within the existing U.S. regulatory landscape.
The proposal introduced various models for structuring tokenized securities, aiming to address long-standing legal uncertainties that continue to challenge crypto asset issuers. By presenting these models, Ondo Finance seeks to align blockchain innovations with the regulatory expectations of U.S. financial authorities.
SEC’s Upcoming Crypto Task Force Roundtable
As part of its ongoing efforts to address regulatory challenges in the cryptocurrency space, the SEC will host a “Crypto Task Force Roundtable” on April 25 in Washington, D.C. The event will focus on critical considerations for crypto custody, a topic of increasing importance as digital assets gain wider adoption.
Panel Discussions and Participants
The roundtable will feature two key panels:
- Custody through broker-dealers
- Custody for investment advisers and investment companies
Panelists will include representatives from prominent firms such as Fireblocks, Anchorage, Kraken, and BitGo, as well as legal experts from institutions like Georgetown University and the University of Pennsylvania. The event will be open to the public for both in-person attendance and online viewing, with no registration required.
These discussions are expected to provide insights into how the SEC plans to regulate crypto custody and related services, offering valuable guidance for industry participants navigating this evolving space.
With initiatives like these, regulators and industry leaders continue to work toward a balanced approach that fosters innovation while ensuring compliance and investor protection in the fast-growing world of blockchain and cryptocurrency.
