SEC Proposes First Major Transfer Agent Rewrite Since the 1980s, Bringing Blockchain Into Share Ownership Records

News Editor

2026-09-02 10:05:36

The U.S. Securities and Exchange Commission on Tuesday proposed a broad rewrite of the rules for registered transfer agents, the firms that keep the official record of who owns a company’s shares. The agency said it would be the first major overhaul since the rules were adopted in the late 1970s and early 1980s. The proposal would update definitions so they cover electronic records, blockchain-based records, and uncertificated securities, while also requiring written risk management policies, separate bank accounts for issuer and security holder funds, business continuity planning, and turnaround standards that match the current settlement cycle. Public comments will be due 60 days after publication in the Federal Register. The move matters for tokenized equities because a token tied to a real registered share still needs an authoritative ownership record. The SEC also tied the effort to Chair Paul Atkins’ wider market modernization push, and separately released the agenda for a Sept. 17 roundtable on 24-hour trading with participants from NYSE, Nasdaq, DTCC, Citadel Securities, State Street, BlackRock, Robinhood, and FINRA.

The U.S. Securities and Exchange Commission on Tuesday proposed an overhaul of the rules governing registered transfer agents, the firms that maintain the official record of who owns a company’s shares. For the first time, the proposal would explicitly bring blockchain-based recordkeeping into that framework.

The SEC said the proposal would mark the first major rewrite of those rules since they were adopted in the late 1970s and early 1980s.

Blockchain-based records enter the rulebook

Under the proposal, the agency would modernize definitions so they cover electronic records, blockchain-based records, and uncertificated securities. It would also require transfer agents to maintain written risk management policies, keep a separate bank account for issuer and security holder funds, adopt a business continuity plan, and align turnaround standards with the current settlement cycle.

Comments will be due 60 days after publication in the Federal Register.

A key bottleneck for tokenized equities

Transfer agents sit at the choke point for tokenized equities. A token that represents a real registered share still needs someone to keep the authoritative ownership record. That is why Securitize and Plume hold transfer agent registration.

Rules built for paper certificates pushed that work into workarounds. Allowing a blockchain to serve as the record would remove a structural obstacle.

Part of a broader SEC market modernization push

Jamie Selway, director of the Division of Trading and Markets, described the rewrite as part of Chairman Paul Atkins’ effort to modernize legacy regulation.

Separately on Tuesday, the SEC released the agenda for a Sept. 17 roundtable on 24-hour trading. Panelists are set to include representatives from the New York Stock Exchange, Nasdaq, the Depository Trust & Clearing Corporation, Citadel Securities, State Street, BlackRock, Robinhood, and the Financial Industry Regulatory Authority.

The transfer agent proposal sits within Project Crypto, Atkins’ push to move U.S. markets onchain. Last week, the SEC also unveiled its Regulation Crypto Assets framework, which aims to set rules around how crypto projects can raise funds.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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