SEC Proposes Blockchain-Based Shareholder Records
The US Securities and Exchange Commission (SEC) is proposing significant changes to its rules for transfer agents, which maintain official shareholder records. The agency wants to allow blockchain or distributed ledger technology to be used as part of these records, rather than just keeping a parallel digital representation.
This would bring tokenized securities deeper into the machinery that determines who legally owns shares. However, regulated transfer agents would still retain exclusive control over the official shareholder file and remain responsible for its accuracy, security, and production to regulators.
SEC Chairman Paul Atkins said the proposal reflects the growing use of electronic communications and blockchain technology in securities offerings and share transfers. The broader rewrite would also replace paper-based requirements with electronic recordkeeping standards and update reporting around tokenization and distributed ledgers.