The U.S. Securities and Exchange Commission has proposed a major update to transfer agent rules that largely date back to the 1970s and 1980s, aiming to bring regulatory standards into line with growing use of blockchain-based recordkeeping and tokenized securities.
The proposal would revise requirements covering registration, recordkeeping, safeguarding and securities transfers, and would add new provisions to address risks arising from increasingly digital and automated market infrastructure. The agency specifically cited interest from market participants in “onchain” or blockchain-native transfer agent models, tokenized fund administration, and cross-chain interoperability.
Regulators said the current framework does not adequately address emerging threats such as cybersecurity incidents, operational resilience failures, and the safeguarding of securities and investor records in a more digital environment. To respond, the draft rules would expand reporting obligations and impose new compliance standards, including requirements related to restrictive legends on securities and the oversight of third-party service providers.
The SEC is soliciting public comment on the proposal; comments will be accepted for 60 days after the rule is published in the Federal Register.
The transfer-agent proposal is part of a broader SEC effort to modernize and simplify securities regulation. Earlier in the year the agency proposed allowing companies to opt into semiannual reporting, revising filer classifications, and widening access to streamlined registered offerings. The SEC has also moved a proposed overhaul of custody rules for investment advisers and funds — including potential guidance on custody of crypto assets — through interagency review.
The SEC’s draft transfer agent rules and related materials are available from the agency. Readers should review the proposal and related analyses and consider submitting comments during the public comment period.