SEC Targets Transfer Agent Rules for Blockchain Era

The US Securities and Exchange Commission (SEC) has proposed updating its decades-old rules governing transfer agents to better suit the increasing use of blockchain-based recordkeeping and tokenized securities in US markets.

The proposal aims to address emerging risks related to cybersecurity, operational resilience, and the safeguarding of securities and investor records, particularly as market participants seek to bring 'onchain' transfer agents into the US market.

The SEC's existing framework has not been substantively updated since the late 1970s and early 1980s, when the industry still relied heavily on paper certificates and manual recordkeeping.