SEC Opens Door for Blockchain in Transfer Agent Regulations

The US Securities and Exchange Commission (SEC) has proposed a new rule to modernize transfer agent regulations, which could make blockchain an official record of ownership.

The proposal, announced on September 1, aims to update rules that have remained largely unchanged since the late 1970s and early 1980s. It addresses electronic communications, digital recordkeeping, tokenized securities, distributed ledger technology, risk controls, and transfer-agent reporting.

One of the key changes is that registered transfer agents could use distributed ledger systems to record ownership and process securities transfers. This would allow blockchain technology to serve as an official record of securities ownership.