Regulation Could Undermine Jarsy Model

The real risk is that Jarsy only keeps its low minimums and simple app experience by sitting on top of rules that were written for slower, heavier private share transactions. Jarsy uses Delaware SPVs to buy secondaries, then sells blockchain tokens with only economic rights, not direct share ownership. That is what cuts paperwork and makes small tickets possible, but it also means any SEC or FINRA push to treat those tokens like fully regulated securities trading could force broker-dealer, custody, transfer, and reporting upgrades that look much more like EquityZen, Monark, INX, or Prometheum infrastructure.

• Traditional platforms already show what full compliance looks like in practice. EquityZen built around issuer approval, cap table access, and standardized three party workflows because private companies can block transfers or shut markets down when they feel cut out. Jarsy is deliberately lighter weight, which is why regulation is a business model issue, not just a legal one.
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• The token wrapper removes friction for users, but adds a new layer regulators may focus on. Monark argues tokenized wrappers on top of SPVs add operational and risk layers, while regulated tokenized securities venues like INX and Prometheum operate with broker-dealer, ATS, custody, clearing, and settlement permissions that are expensive to build.
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• Issuer resistance can trigger the same outcome from the other side. OpenAI publicly warned in July 2025 that Robinhood's OpenAI tokens were not OpenAI equity and had not been approved, showing how quickly a high profile private company can challenge tokenized share products that sit one step removed from the underlying cap table.
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The likely direction is a split market. The winners in tokenized private shares will be the firms that keep Jarsy's consumer simplicity while adding enough licensed market structure to satisfy regulators and issuers. As rules harden, cost advantages will shift from avoiding infrastructure to spreading compliance costs across much larger volume.