SEC Proposes Blockchain Solution for Tokenized Stocks Ownership Record

The United States Securities and Exchange Commission (SEC) has proposed a solution to the long-standing issue of tokenized stocks having two separate ownership records.

Currently, one record exists on the blockchain, showing which wallet holds the token, while another is maintained by a legally recognized transfer agent. However, under the SEC's new proposal, electronic databases, including blockchain ledgers, could serve as the official record of securities ownership.

This would mean that the blockchain could become the 'master securityholder file', reducing the need for reconciliation and minimizing legal and operational risks. This change would be particularly beneficial in events such as bankruptcy, where conflicting ownership records can cause disputes.

Joris Delanoue, co-founder and CEO of Fairmint, pointed out an important distinction: 1:1 backed is not the same as 1:1 ownership. He emphasized that the industry needs to clarify whether tokenized assets give investors actual legal ownership or simply exposure to assets held by an intermediary.

The SEC's proposal also comes as it revisits crypto custody rules, preparing proposed amendments to the Custody Rule, which are expected to be published by October 2026. Thailand has also announced plans to tighten crypto regulations from February 27, 2027, requiring licensed exchanges to track P2P transfers and identify counterparties.