The SEC proposed overhauling transfer agent rules unchanged since the ‘70s, adding standards for blockchain recordkeeping, tokenized securities, AI, and cybersecurity risks.
Crypto Regulation & Tokenization News
The US Securities and Exchange Commission (SEC) has proposed a sweeping update to its transfer agent rules, which have not seen any meaningful changes since the late 1970s.
The proposal, announced Sept. 1, addresses blockchain-based recordkeeping, tokenized securities, and the growing role of automation and artificial intelligence in securities markets.
Transfer agents serve as recordkeepers for securities. They maintain ownership records and handle corporate actions such as mergers and dividend distributions. They also play a central role in the clearing and settlement process. The SEC said its existing framework was built around paper certificates and manual recordkeeping and no longer reflects how the industry operates.
Modernizing Decades-Old Market Infrastructure
SEC Chair Paul Atkins said the proposal would bring the agency's rules in line with current practice. "This proposal would streamline and modernize the Commission's rules to reflect transfer agents' current processes and operations, including the use of electronic communications and blockchain technology in connection with securities offerings and the transfer of shares," Atkins said. The agency said market participants are actively seeking to bring blockchain-native transfer agents into the US market, covering models for tokenized fund administration and cross-chain interoperability.
The 421-page rule change outlines expanded reporting requirements and new compliance standards. These include rules on restrictive legends on securities, the use of third-party service providers, and cybersecurity and operational resilience. Transfer agents working with tokenized securities, distributed ledger technologies, and smart contracts would face specific requirements around blockchain data integrity and the security of tokenized assets. Those adopting AI or automated processes would need to demonstrate proper oversight and accurate representations of system capabilities.
Related Article: Wall Street Eyes Bitcoin Bottom as SEC, CFTC Push Ahead Despite CLARITY Delay
Industry Already Moving Toward Blockchain Registration
Some firms have already moved toward blockchain-based securities infrastructure. Injective recently became an SEC-registered transfer agent, giving it a regulated framework for tracking ownership of tokenized assets. Securitize and tZERO are also registered transfer agents operating in the digital asset space.
SEC Commissioner Hester Peirce, who is set to leave the agency within weeks, said she was glad to see the rule change advance before her departure. "I am pleased to support it and, although I will not be here to assist, I will be cheering the Commission from the outside as it finalizes the rule," Peirce said. Public comments on the proposal are due 60 days after it is published in the Federal Register.
The transfer agent proposal is part of the SEC’s broader push to update its rulebook. In May 2026, the agency proposed allowing companies to switch to semiannual reporting, simplify the filer classification system, and expand access to streamlined registered securities offerings. Last week, the SEC sent a proposed overhaul of custody rules for investment advisers and funds to the White House for review, with potential changes covering how firms hold crypto assets for clients.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
