SEC Proposes Update to Transfer Agent Rules with Blockchain Focus

The US Securities and Exchange Commission (SEC) has proposed an overhaul of its decades-old transfer agent rules to better accommodate blockchain-based recordkeeping and tokenized securities.

The current framework, which hasn't been substantively updated since the late 1970s and early 1980s, doesn't adequately address emerging risks involving cybersecurity, operational resilience, and safeguarding investor records.

The SEC notes that market participants are seeking to introduce blockchain-native transfer agents into the US market, citing models for on-chain recordkeeping, tokenized fund administration, and cross-chain interoperability.