SEC Proposes Transfer Agent Rules for Blockchain Era

Transfer agents maintain shareholder records, safeguard assets and process changes in securities ownership, making them a critical part of US post-trade infrastructure. The Securities and Exchange Commission’s framework dates to the 1970s and has not undergone a comprehensive overhaul in more than four decades, leaving key requirements ill-suited to blockchain-based ledgers, on-chain settlement and the growing market for tokenized securities.

The SEC has proposed a broad rewrite covering registration, recordkeeping, asset safeguarding and securities transfers, while explicitly bringing distributed-ledger systems and automated market infrastructure into the regulatory framework. The plan would also establish updated cybersecurity, operational-resilience and control standards for on-chain transfers. If adopted, the changes would provide a clearer compliance structure for transfer agents supporting tokenized securities in US markets.