Ondo Finance Seeks Regulatory Path for Tokenized U.S. Securities in Meeting with SEC

On April 24th, COINOTAG reported a significant development from the U.S. Securities and Exchange Commission (SEC). The regulatory body convened with Ondo Finance, represented by the esteemed law firm Davis Polk & Wardwell LLP, to deliberate the legal intricacies surrounding the issuance of tokenized U.S. securities. Central to the discussion were critical elements such as the structural frameworks for tokenized securities, essential registration and broker mandates, and the regulatory landscape governing market structure. Additionally, key topics included compliance with financial crime legislation and nuances of state corporate law. Ondo Finance proposed the establishment of a regulatory sandbox, or similar exemptions, to propel the advancement of its innovative tokenized asset offerings. This meeting aims to lay down a cohesive regulatory foundation for the burgeoning field of tokenized securities within the U.S. investment landscape, enhancing future market participation.