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:
CLARITY Act (July 18, 2025)
Codifies the SEC's framework for Special Purpose Broker-Dealers (SPBDs) to custody and facilitate secondary trading of crypto asset securities.
Enables tokenized equities issued under Reg A+ and S-1 to be traded in digital format.
→ Ohanae's pending SPBD approval is timed perfectly. Its hybrid AMM model operates in compliance with the Act, with 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.
The Future of Stock Trading. 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 member of FINRA/SIPC. Additional information about Ohanae Securities LLC can be found on BrokerCheck. Ohanae Securities LLC is in discussions with FINRA about exploring the expansion of business lines for the broker/dealer. Any statements regarding abilities of Ohanae Securities LLC are subject to FINRA approval and there are no guarantees FINRA will approve the broker/dealer's expansion.
Ohanae Securities is seeking approval to be a special purpose broker-dealer that is performing the full set of broker-dealer functions with respect to crypto asset securities – including maintaining custody of these assets – in a manner that addresses the unique attributes of digital asset securities and minimizes risk to investors and other market participants. If approved, Ohanae Securities will limit its business to crypto asset securities to isolate risk and having policies and procedures to, among other things, assess a given crypto asset security's distributed ledger technology and protect the private keys necessary to transfer the crypto asset security.