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SEC proposes updating transfer-agent rules to allow onchain ownership records
The SEC proposed an overhaul first major rewrite of transfer-agent rules since the late 1970s and early 1980s, aiming to replace paper requirements with electronic recordkeeping and expand how tokenized securities fit into official shareholder records.
The US Securities and Exchange Commission has proposed a major update to transfer-agent rules, allowing blockchain or other distributed-ledger technology to be used as part of a company’s master securityholder file. The proposal, released Sept. 1, would move blockchain-based recordkeeping deeper into the process that determines who legally owns shares, rather than limiting distributed ledger systems to parallel records.
Under the plan, one recordkeeping transfer agent would retain exclusive control over the official shareholder file and stay responsible for accuracy, security, and production for regulators. SEC Chairman Paul Atkins said the proposal reflects growing use of electronic communications and blockchain technology in securities offerings and share transfers.
The SEC’s broader rewrite would also update recordkeeping requirements, replacing paper-based obligations with electronic standards, and revising related reporting around tokenization and distributed ledgers. The agency said transfer agents would be able to choose whether to use blockchain, but the system must still meet SEC requirements for master securityholder records.
CryptoSlate reports that Securitize, a registered transfer agent that uses blockchain infrastructure for digital securities, said the SEC’s approach aligns with its view that public blockchains should be incorporated into securities recordkeeping while transfer agents oversee the official ownership record. Securitize said modernization should raise standards, and it described the regulatory shift and adoption of digital securities as a tailwind for the sector.