SEC Updates Transfer-Agent Rules with Blockchain-Friendly Proposal

The US Securities and Exchange Commission (SEC) has proposed an update to registered transfer-agent rules that explicitly accounts for blockchain technology in securities offerings and share transfers.

The proposal, which was announced on September 1, revises rules and forms governing firms that support the national clearance and settlement system. This marks a significant development as institutions build systems for tokenized shares and settlement.

According to the SEC, its transfer-agent framework has not been substantively updated since the first rules were adopted in the late 1970s and early 1980s. The agency argues that parts of the existing framework may no longer address current functions adequately.