Ondo Finance has filed a no-action letter request with the Securities and Exchange Commission (SEC) asking the regulator to confirm that a targeted expansion of its Ondo Global Markets (OGM) product will not trigger enforcement action. This is also coming the same day the SEC’s Division of Trading and Markets published a staff statement establishing conditions under which crypto trading interfaces. What is Ondo actually asking the SEC to do? Ondo’s OGM products are tokenized notes that give non-US investors exposure to US-listed stocks and ETFs. What Ondo is proposing is that, in limited circumstances, the relevant securities entitlements would also be represented in tokenized form on Ethereum Mainnet and held by custodian BitGo, to support recordkeeping and operational processes. Ondo stated that the request “is meant to function as a recordkeeping innovation, not a rewrite of market structure.” The firm submitted a detailed tokenized securities roadmap to the SEC’s crypto task force in December 2025, the same month the regulator closed its investigation into Ondo without any charges. The investigation lasted roughly two years and started when the agency was led by Gary Gensler. What does the SEC’s new guidance cover? The Division of Trading and Markets directed its staff statement to a category it calls “Covered User Interfaces,” which refers to websites, browser extensions, and mobile applications that convert user-defined transaction parameters into blockchain-executable commands, typically as a front-end layer over decentralized trading protocols. Operators of such interfaces, including decentralized exchange aggregators and self-custodial wallet interfaces, don’t need to register as broker-dealers, provided they meet an eleven-point compliance framework. According to the staff statement, providers must refrain from soliciting specific transactions or offering investment recommendations, among others. Providers are also required to make disclosures covering fees, any conflicts of interest, and cybersecurity policies. The statement was also clear about what falls outside its protection. Atkins’ SEC is not Gensler’s SEC In 2025, Atkins stated that an entire generation of digital asset innovation was being developed offshore because American regulators failed to provide clear rules. He said, “the SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant.” Under his “ Project Crypto ” initiative, the Commission has moved toward a proactive regulatory framework, rejecting the agency’s prior regulation-by-enforcement approach and directing staff to draft clear rules for the distribution, custody, and trading of crypto assets. Today’s staff statement sits within a sequence of pre-emptive guidance actions which the SEC has released under the leadership of Atkins. The qualifier is that Atkins himself has described the current run of staff-level pronouncements as “extremely temporary,” stating that Commission action via formal rulemaking is “both vital and necessary.” Today’s guidance, like those before it, buys operational space for market participants without creating rules. If you're reading this, you’re already ahead. Stay there with our newsletter .
