SEC Proposes Rule Change to Modernize Transfer Agent Regulations
The U.S. Securities and Exchange Commission (SEC) has proposed a new rule change aimed at modernizing decades-old regulations for registered transfer agents.
The current regulation, established in the late 1970s and early 1980s, does not adequately cover the wider variety of services offered by transfer agents today.
The SEC noted that transfer agents play a critical role in the clearing and settlement infrastructure of the U.S. securities markets, and the new proposal aims to better reflect current processes and operations.
SEC Chairman Paul S. Atkins highlighted blockchain technology as an important aspect of the modernization efforts, stating that it would consider the use of blockchain in electronic communication methods and in connection with securities issuances and share transfers.