SEC’s ‘Innovation Exemption’ lifts ONDO – Can the altcoin escape 4 month trap?

Ondo Finance [ONDO] rose more than 12% over the past 24 hours, tracking the broader crypto market rally. Daily trading volume jumped 91%, surpassing $267 million at press time.

However, ONDO also had a catalyst closer to home: new U.S. regulatory relief for tokenized stock trading.

SEC issues a 5-year innovation exemption

The main driver behind ONDO’s rally was a regulatory milestone for tokenization.

On the 17th of September, the U.S. Securities and Exchange Commission issued its “Innovation Exemption.” The order granted conditional relief to qualifying Tokenized Securities Venues for five years.

These venues could trade tokenized stocks through permissioned liquidity pools without registration as traditional exchanges.

SEC Chairman Paul Atkins called the decision a significant step toward bringing U.S. capital markets on-chain. For Ondo, the exemption could widen the regulated market available to its tokenized products.

Ondo Finance’s tokenized market cap exceeded $3.50 billion. Stocks accounted for more than $900 million of that value.

Funds held the largest share at 71.2%. Stocks followed at 25.5%, while Stablecoins and Commodities held 2.1% and 1.2%. The regulatory window strengthened Ondo’s business case. However, ONDO’s chart still awaited confirmation.

Can ONDO escape its four-month triangle?

ONDO attempted to break above a triangle pattern that had formed since early May. The price tested descending resistance, which had fallen from $0.49 toward $0.38.

Meanwhile, the MACD turned green after eight days of seller momentum. Its signal lines also recorded a bullish crossover.

A confirmed breakout could expose the triangle’s upper boundary near $0.50. By contrast, rejection could return ONDO toward the $0.30–$0.32 support zone.

Even so, the RSI Divergence remained bearish, suggesting sellers were yet to be exhausted.

If ONDO lost $0.30, the next demand zone would sit around $0.26. The SEC’s temporary relief could attract capital toward Ondo’s tokenized ecosystem.

Still, ONDO needed buyers to convert that regulatory optimism into a confirmed breakout. Profit-taking from buyers positioned around $0.30 could also interrupt the rally.

Final Summary

• ONDO rose over 12% as the SEC created a clearer route for regulated tokenized stock trading.
• ONDO tested four-month resistance, although bearish RSI Divergence kept rejection risks alive.