Ondo Finance, a firm focused on integrating traditional financial assets into blockchain environments, met with the U.S. Securities and Exchange Commission's (SEC) Crypto Task Force on April 24 to discuss the regulatory framework for tokenizing U.S. securities. The discussions, which included legal counsel from Davis Polk & Wardwell, covered structuring options for issuing tokenized securities, particularly those referencing U.S. equities and fixed-income instruments. The talks also addressed regulatory challenges such as registration requirements, broker-dealer obligations, and compliance with financial crimes regulations. Following the meeting, Ondo Finance's token, ONDO, surged past $1, marking a significant increase in its market capitalization to $3 billion, the highest since March. This surge was accompanied by a 16% price jump and a 147% spike in trading volume, reflecting market enthusiasm for the potential of tokenized securities. Ondo Finance manages over $1 billion in tokenized products, representing 16.4% of the $6.15 billion tokenized U.S. Treasuries market, with products like the Ondo Short-Term U.S. Government Bond Fund (OUSG) and the U.S. Dollar Yield Token (USDY), the latter backed by short-term Treasuries and demand deposits held with banks. The SEC is actively engaging with the crypto industry, having held 81 meetings since the creation of its Crypto Task Force in January. These engagements are part of a broader effort to clarify regulatory guidelines under the current administration, with topics ranging from staking in exchange-traded products to market manipulation on centralized platforms. The Ondo Short-Term U.S. Government Bond Fund (OUSG) is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).