SEC Proposes Blockchain-Friendly Transfer Agent Rules Overhaul

The US Securities and Exchange Commission (SEC) has proposed an overhaul of its decades-old transfer agent rules to better align with the increasing use of blockchain-based recordkeeping and tokenized securities in US markets.

Transfer agents would face expanded reporting requirements and new compliance standards under the proposal, including rules governing restrictive legends on securities and the use of third-party service providers.

The SEC's existing framework has not been substantially updated since the late 1970s and early 1980s, when the industry relied heavily on paper certificates and manual recordkeeping.

The agency is seeking public comment on the proposed changes, with comments due 60 days after the proposal is published in the Federal Register.