Internet reports that the U.S. Securities and Exchange Commission issued a memorandum stating that representatives of Ondo Finance and Davis Polk & Wardwell LLP held talks with the U.S. Securities and Exchange Commission (SEC) Cryptography Working Group to discuss compliance paths for the issuance and sale of tokenized U.S. securities. Meeting topics included key issues such as structural models for tokenized securities, registration and broker requirements, market structure regulations, financial crime compliance, and state corporate laws. Ondo Finance has proposed to seek a regulatory sandbox or other form of regulatory exemption to advance the issuance of its tokenized asset products. The talks aim to provide a clear regulatory framework for tokenized securities in the U.S. market.