SEC Proposes Modernizing Transfer Agent Rules for Blockchain Era

The US Securities and Exchange Commission (SEC) has proposed amendments to its transfer agent rules to reflect changes in technology and financial markets. The current framework, established in the late 1970s and early 1980s, has not been updated since then.

The proposal aims to address electronic recordkeeping, communications, and blockchain technology used in securities transactions. It revises several existing requirements, introduces new provisions, removes one rule, and revises regulatory forms used by registered transfer agents.

The SEC's Chairman Paul S. Atkins said the proposal would 'streamline and modernize' the Commission's rules to reflect current processes and operations, including the use of electronic communications and blockchain technology in securities offerings and share transfers.