SEC Proposes Blockchain-Ready Transfer Agent Rules

The US Securities and Exchange Commission (SEC) has proposed a significant update to its transfer agent rules, which have remained largely unchanged since the late 1970s.

The proposal aims to modernize market infrastructure by incorporating blockchain-based recordkeeping, tokenized securities, and automation in securities markets.

Transfer agents serve as recordkeepers for securities, maintaining ownership records and handling corporate actions such as mergers and dividend distributions.

The SEC's existing framework was built around paper certificates and manual recordkeeping, but the agency says its rules no longer reflect current industry practices.