Ondo Urges Regulators to Embrace Blockchain-Based Fixes for Crypto Market
Ondo Finance has submitted three comment letters to the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), urging regulators to adopt technology-driven fixes for the crypto market structure.
The letters focus on perpetual futures, portfolio margining, and market data reporting, with Ondo arguing that blockchain infrastructure can meet regulatory goals more directly. The company contends that traditional requirements often reflect slower settlement processes and fragmented records, creating rules that may not account for modern blockchain capabilities.
Ondo's submissions highlight the potential of blockchain technology to transform trading, settlement, collateral, and reporting in the crypto market. For perpetual futures, the company points out that existing security futures law already provides room for contracts that do not expire, using funding mechanisms and mark-to-market processes instead of relying on expiration.
The portfolio margining filing focuses on how newer infrastructure can improve risk measurement and collateral management, allowing positions and collateral to be monitored and settled more frequently. Ondo also argues that regulators should rely on onchain transactions for data reporting, rather than requiring a separate structure to reconstruct activity already recorded on a blockchain.