SEC Proposes Transfer Agent Rule Overhaul to Accommodate Blockchain-Native Recordkeeping

The U.S. Securities and Exchange Commission (SEC) has proposed an overhaul of transfer agent rules to modernize the governance of recordkeeping and issuance infrastructure in the securities market.

The proposal, which is open for public comment, aims to update long-standing requirements around transfer agent registration, recordkeeping, safeguarding, and securities transfer operations.

The current framework has not been substantively updated since the late 1970s and early 1980s, when paper-based processes dominated. The SEC argues that this gap in regulation is particularly relevant now as market participants are increasingly seeking to operate with blockchain-native recordkeeping models.