Ondo Finance appealed the Nasdaq regulation.

Cryptocurrency investors are closely following Ondo Finance’s latest move. The company has filed with the U.S. Securities and Exchange Commission (SEC), claiming that Nasdaq’s plan to launch tokenized securities lacks transparency. This development has once again brought uncertainties about the future of tokenization to the forefront.

In a formal letter sent to the SEC, Ondo Finance argued that Nasdaq’s recent rule change regarding the listing of security tokens threatens the fairness of market access. The company emphasized that the details of the proposed regulation by the exchange are ambiguous. While Nasdaq aims to accelerate the trading of tokenized assets, it has not shared sufficient information regarding the Depository Trust Company (DTC), which will handle the settlement and clearing of transactions.

Ondo Finance officials stated that Nasdaq’s plans are based only on assumptions about how the DTC operates. It is believed that this uncertainty prevents the SEC from thoroughly evaluating the situation. The company aims to offer tokenized U.S. Treasury bonds and equity-like assets to investors. However, they highlight that information asymmetry currently works in favor of large financial institutions, and smaller or new entrants struggle to access adequate data.

Ondo expressed that they could support Nasdaq’s proposal if the DTC publicly discloses its plans in a more transparent manner, but stated that until such transparency is achieved, the SEC should thoroughly review the matter. This situation has reignited discussions about the regulatory uncertainties faced during the integration of blockchain-based solutions in U.S. securities markets.