SEC Proposes Transfer-Agent Rule Update to Accommodate Tokenized Assets

The US Securities and Exchange Commission (SEC) has proposed updating its decades-old transfer-agent rules to accommodate tokenized assets. The move aims to modernize the framework for federal transfer agents, which was established in the late 1970s and early 1980s.

According to SEC Chair Paul Atkins, the proposal will allow blockchain technology to be used in connection with securities offerings and share transfers. Industry experts have hailed it as a significant step for tokenized real-world assets and institutional adoption.

Bitunix analyst Dean Chen noted that the SEC is not directly changing how crypto-native secondary markets operate. Instead, the updated transfer-agent framework will reflect the use of electronic records and blockchain technology in securities issuance and share transfers.

The proposal has been met with enthusiasm from some experts, who see it as a step towards legitimizing blockchain as market infrastructure. Michael Terpin, CEO of Transform Ventures, believes that traditional financial institutions and their clients will benefit greatly from more efficient and transparent infrastructure.