SEC Proposes Update to Transfer Agent Rules, Paving Way for Blockchain Ownership Records
The US Securities and Exchange Commission (SEC) has proposed an update to its rules governing registered transfer agents, which could pave the way for blockchain technology to become an official record of securities ownership.
The proposal, published on September 1, aims to modernize oversight as tokenized securities infrastructure grows. It addresses electronic communications, digital recordkeeping, tokenized securities, distributed ledger technology, risk controls, and transfer-agent reporting.
According to Jamie Selway, director of the Division of Trading and Markets, regulators must revisit legacy rules as technology changes. He called the proposal another step in Chairman Atkins' effort to update the regulatory framework.
The proposed changes include allowing registered transfer agents to use distributed ledger systems to record ownership and process securities transfers. Firms would also be required to report how many tokenized securities they service and identify the blockchain platforms supporting those records.