SEC Proposes Blockchain Consideration in Transfer Agent Rules
The US Securities and Exchange Commission (SEC) has proposed significant updates to transfer agent rules, including electronic record-keeping, tokenized securities, and blockchain use for ownership registers. This proposal aims to modernize existing regulations that have not been substantially updated since the late 1970s and early 1980s.
According to SEC Chairman Paul Atkins, 'This proposal aims to simplify and modernize the Commission's rules to reflect current processes and operations of transfer agents, including the use of electronic communications and blockchain technology in connection with securities issuance and share transfers.'
The proposed changes also consider the use of distributed ledger technology (DLT) and tokenized securities. Transfer agents will be required to report on the number of issues maintained using DLT, tokenization providers, and digital wallet addresses.