SEC Proposes Blockchain-Friendly Updates to Transfer Agent Rules

The US Securities and Exchange Commission (SEC) has proposed updates to its decades-old rules governing transfer agents, which maintain official records of securities ownership. The proposal revises rules and forms for registered transfer agents to reflect their use of electronic systems and blockchain technology for securities offerings and transfers.

One key aspect of the proposal is the SEC's recognition of blockchain as a recordkeeping system for securities. Transfer agents will be able to use blockchain networks to record who owns securities and track transfers, improving settlement speed and transparency for investors.

The changes also benefit tokenized stocks and other traditional financial assets by providing a clear framework for companies building on-chain securities markets. Exchanges, brokers, custodians, and blockchain infrastructure providers will be affected, as they can support more tokenized securities and build services around blockchain ownership and settlement.