SEC Proposes Major Overhaul of Transfer Agent Rules Amid Blockchain Adoption

The U.S. Securities and Exchange Commission (SEC) has proposed significant changes to the rules governing transfer agents, which are firms responsible for maintaining key records and processing securities transfers.

The agency argues that its current framework has not been substantially updated since the late 1970s and early 1980s, when paper certificates and manual recordkeeping dominated the market.

The proposed changes would update multiple layers of transfer-agent regulation, including requirements related to registration, recordkeeping practices, safeguarding responsibilities, and securities transfer handling.

The SEC is also seeking additional disclosures and compliance reporting that better match the realities of digital systems, as well as new standards for third-party service providers used in transfer-agent operations.