SEC Proposes Rule Updates to Reflect Blockchain Adoption

The U.S. Securities and Exchange Commission (SEC) has proposed updates to its rules for transfer agents, aiming to modernize their operations in line with current practices.

The current rules, which have not been updated since the late 1970s and early 1980s, do not adequately address the diverse range of functions performed by transfer agents today.

Using blockchain technology is becoming increasingly common among these agents, who are now responsible for storing ownership records for securities. The proposed rules would allow them to use this technology in their operations.

The changes also include a requirement for transfer agents to disclose the number of tokenized securities they hold on record and which blockchain networks they use.