The US Securities and Exchange Commission (SEC) crypto task force, led by Hester Peirce, has held a meeting with Ondo Finance and law firm Davis Polk and Wardwell to discuss regulatory issues regarding wrapped, tokenized versions of US securities. Ondo Finance has supported Donald Trump through donations, and Davis Polk recently announced its role in representing Truth Social for crypto-linked exchange-traded funds. The meeting, which took place on April 24, aimed to address registration requirements for tokenized securities and compliance with financial laws, potentially considering a regulatory sandbox. This engagement follows a shift in leadership at the SEC with Paul Atkins replacing Gary Gensler. The upcoming discussions on April 25 will include topics on custody with representatives from various firms like Kraken and Anchorage Digital Bank, reflecting growing demand for digital asset custody in the US. It remains to be seen how the SEC under Atkins will proceed with crypto enforcement cases, as the commission has previously dropped several investigations against firms linked to political donations to Trump.

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