SEC Proposes Rulemaking Process for Blockchain-Based Transfer-Agent Systems
The US Securities and Exchange Commission (SEC) has proposed a new rulemaking process to modernize transfer-agent systems for blockchain records. The proposal aims to update federal rules and forms governing registered transfer agents, which have not received substantial updates since the late 1970s and early 1980s.
According to Ryan Lee, Bitget's Research Chief Analyst, the key difference between tokenized stock products available outside the US and those in the US is how ownership is recorded, not the token itself. The proposal would permit transfer agents to use blockchain-based systems for securities records, but it does not make tokens legal shares or grant holders shareholder rights.
The SEC's proposal has been met with interest from market operators, who see potential benefits in updating the plumbing of authoritative tokenized registers. However, Lee cautioned that the rulemaking deals with the systems supporting securities ownership, not the legal status of tokenized shares themselves. Adoption would not automatically establish a token as the underlying security or give its holder voting, dividend, and other shareholder rights.