The U.S. Securities and Exchange Commission proposed a broad update to registered transfer-agent rules on September 1, explicitly accounting for blockchain technology in securities offerings and share transfers. In its official announcement, the SEC said the proposal would revise rules and forms governing firms that support the national clearance and settlement system. It remains a proposal rather than a final rule.
SEC Targets Rules Last Reworked Decades Ago
The agency said its transfer-agent framework has not been substantively updated since the first rules were adopted in the late 1970s and early 1980s. Transfer agents now provide a wider range of services to issuers, investors and market intermediaries, while electronic records and communications have replaced many older processes. The SEC argues that parts of the existing framework may no longer address those functions adequately.
Chairman Paul S. Atkins said the changes are intended to reflect current operations, including the use of blockchain in securities offerings and share transfers. That reference places distributed-ledger workflows inside a wider market-infrastructure review rather than creating a standalone set of blockchain rules.
Proposal Covers Records, Communications and Services
The package would amend existing rules and forms, rescind one rule and introduce new requirements for registered transfer agents and their activities, according to the SEC. The announcement did not present blockchain as a separate regulatory category. Instead, it grouped the technology with electronic communications, electronic recordkeeping and the evolving services transfer agents deliver across the securities market.
The approach is relevant as institutions build systems for tokenized shares and settlement. ICE and tZERO recently outlined a tokenized securities infrastructure initiative, while other market participants have sought clearer treatment of digital-asset custody. The SEC’s latest action focuses narrowly on the intermediaries responsible for accurate holder records and ownership changes.
Public Comment Comes Before Any Final Rule
The proposing release is available on the SEC website and is due to appear in the Federal Register. The comment period will remain open for 60 days after that publication date, giving transfer agents, issuers, investors and technology providers time to respond before the agency considers any final action.
Any binding requirements would depend on a later final rule adopted after the SEC reviews public feedback. The proposal therefore signals regulatory direction without immediately changing transfer-agent obligations. It follows other recent SEC work on market structure and digital assets, including a renewed debate over crypto custody standards.
