The U.S. Securities and Exchange Commission on Sept. 1 proposed its first major overhaul of transfer agent rules since the 1970s, with the proposal opening a path for blockchain technology to be used in securities registration and settlement. Under the proposal, transfer agents would be allowed to use distributed ledger technology to record and transfer securities. At the same time, the SEC said ownership records should not be fragmented across token wrappers, special purpose vehicles, broker-dealer internal ledgers, and offline databases. The proposal addresses a core recordkeeping issue as tokenized securities infrastructure develops. Fairmint and other organizations have argued that an on-chain capitalization table should serve as the official record required under Section 17A of the Securities Exchange Act. The move puts blockchain-based record systems directly into the discussion around regulated securities operations rather than leaving them outside the formal transfer agent framework.
According to Odaily, the U.S. Securities and Exchange Commission on Sept. 1 proposed its first major revision to transfer agent rules since the 1970s, in a move that would bring blockchain technology into the securities registration and settlement system.
Under the proposal, transfer agents could use distributed ledger technology to record and transfer securities. The SEC also said ownership data should not be split across token wrappers, special purpose vehicles, broker-dealer internal ledgers, and offline databases.
Fairmint and other organizations have argued that an on-chain capitalization table should be treated as the official record required under Section 17A of the Securities Exchange Act.
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