The SEC's Project Crypto, the CLARITY Act, and the Rise of Real-Time Markets
Abstract
The U.S. capital markets are undergoing a fundamental transformation driven by policy reforms and blockchain innovation. Recent developments—including the SEC's Project Crypto, the CLARITY Act, and the GENIUS Act—are paving the way for regulated, blockchain-native market structures. Ohanae is building a real-time, cash-only hybrid AMM market structure for Reg A+ and S-1 securities that aligns with these reforms. This blog explores how Ohanae’s model enables compliant capital formation and trading for tokenized equities, positioning it as a key infrastructure layer for the next chapter of U.S. capital markets.
1. The Problem: Legacy Infrastructure Can't Scale to the Future
Today's securities markets depend on legacy intermediaries: clearinghouses, custodians, transfer agents, and market makers operating within fragmented trading windows. Settlement delays (T+1, or worse), reconciliation risk, and costly compliance burdens still plague issuers and investors alike.
Reg A+ and S-1 offerings—vehicles designed to democratize capital formation—remain underserved. Retail investors are often locked out of liquidity. Secondary trading is opaque, illiquid, or non-existent.
2. Ohanae: A Real-Time, Compliant Alternative
Ohanae is building a regulated, 24×7 market structure for tokenized securities, operating under a novel, cash-only hybrid automated market maker (AMM) model.
- Real-time trading, no central order book
- Fully custodial model, with Ohanae Securities acting as principal market maker
- Blockchain-native transfer agency, identity-linked wallets, and OUSD-based DvP settlement
- Reg A+ and S-1 securities—non-Reg NMS, but compliant with SEC disclosure rules
Ohanae does not rely on crypto speculation or synthetic tokens. Instead, it modernizes securities infrastructure in line with current and emerging regulation.
3. Regulatory Encouragement
The past few weeks have ushered in three major U.S. policy shifts that directly validate the Ohanae model:
Crypto Asset Securities Legislative Update
The CLARITY Act and the Senate's Responsible Financial Innovation Act (RFIA) both establish frameworks for treating digital assets as crypto asset securities during the capital formation stage, allowing issuers to offer tokens under a new exemption modeled on Regulation A+. Both frameworks clarify SEC oversight, define disclosure and compliance obligations, and permit Special Purpose Broker-Dealers (SPBDs) to custody and facilitate secondary trading once tokens are issued. The House passed CLARITY in July 2025, but the Senate is now focusing on RFIA, which is expected to be marked up in committee during the week of October 20, 2025. Depending on amendments and negotiation outcomes, RFIA may either supersede, modify, or incorporate CLARITY provisions, shaping the definitive U.S. legislative approach for crypto asset securities.
→ Ohanae's pending SPBD approval is well-timed. Its hybrid AMM model is designed to operate in compliance with emerging crypto asset securities legislation, featuring on-chain custody and automated settlement.
GENIUS Act (July 17, 2025)
Creates a federal mandate to modernize U.S. capital markets using blockchain-based infrastructure, including:
- On-chain transfer agents
- Digitally native securities issuance
- Real-time delivery-versus-payment (DvP)
→ Ohanae is already live with a blockchain-native transfer agent, smart contract-based token issuance, and real-time DvP settlement via OUSD (a 1:1 tokenized cash asset).
SEC Project Crypto (July 31, 2025)
An SEC-led initiative to explore digitally native market structures, including:
- Non-ATS market making
- Smart contract-based trading
- Custodial digital assets
- Sandboxes for compliant innovation
→ Ohanae's cash-only AMM and principal-based trading structure fits squarely within Project Crypto's intent—and may serve as a sandbox participant.
4. Why This Matters
Ohanae's model is disruptive—but it's also complementary.
- Ohanae does not compete with NYSE/Nasdaq for Reg NMS listings
- It serves the underserved long tail of Reg A+ and S-1 issuers seeking real-time trading
- It gives retail investors compliant access to early-stage equity markets—on-chain, 24×7
This is the future of stock trading—made simple, secure, and regulator-ready.
5. Capital Formation Is Changing. Ohanae Is Ready.
Ohanae envisions a future where equity crowdfunding and secondary liquidity converge under one compliant, regulated platform. Crypto projects, startups, and small-cap companies can raise funds through Reg A+, tokenize their equity, and trade it in real time on a custodial AMM—all without relying on centralized exchanges or OTC networks.
This is not just evolution—it's a reinvention of the capital stack.
Tokenized Securities. Made Simple.
As regulatory clarity arrives and real-time infrastructure becomes feasible, the winners will be platforms that can bridge compliance, technology, and usability.
Ohanae is that bridge.
The first real-time, regulated market structure for tokenized securities. Built for the new regulatory era.
Disclaimer
Ohanae Securities LLC is a subsidiary of Ohanae, Inc. and a member of the Financial Industry Regulatory Authority and Securities Investor Protection Corporation (FINRA/SIPC). Additional information about Ohanae Securities LLC is available on BrokerCheck.
Ohanae Securities LLC is currently in discussions with FINRA regarding the potential expansion of its business lines, which may include custody and related services for crypto asset securities. Any statements regarding the capabilities or services of Ohanae Securities LLC are subject to regulatory approval, and there can be no assurance that such approvals will be obtained.
Ohanae Securities LLC intends to operate in a manner that addresses the unique characteristics of crypto asset securities, including maintaining robust policies and procedures for custody, safeguarding of private keys, and evaluation of distributed ledger technology. The firm’s approach is designed to support crypto asset securities that may not efficiently operate within the traditional National Market System (NMS). Subject to applicable regulatory approvals, Ohanae Securities LLC may expand its activities to include additional services that may be conducted in a dealer-principal capacity, with the objective of protecting investors and maintaining market integrity.