SEC Proposes Overhaul of Transfer Agent Rules for Tokenized Securities
The US Securities and Exchange Commission (SEC) has proposed significant updates to transfer agent rules for the first time in decades, sparking debate about how tokenized securities should be integrated into the traditional market framework.
The proposal, published on September 1, aims to modernize registration and reporting requirements for the approximately 273 registered transfer agents operating in the US. This includes new terminology that reflects the reality of electronic and distributed ledger technology.
A crucial aspect of the proposal is the SEC's engagement with tokenization, which has raised questions about how digital wallets should be treated compared to traditional physical addresses and what fraud risks emerge from onchain transactions.