The U.S. Securities and Exchange Commission has proposed changes to transfer agent rules that would allow blockchain to serve as an official record of securities ownership. The plan, released on September 1, is aimed at updating long-standing requirements to reflect the growth of tokenized securities and the use of blockchain-based systems in issuance and recordkeeping.
If adopted, the amendments would mark a significant shift in how ownership records for certain securities can be maintained under U.S. rules. Transfer agents, which are responsible for maintaining records of who owns securities, would be permitted to use blockchain as a formal recordkeeping method rather than relying only on older administrative frameworks.
Update to transfer agent rules
The SEC said the proposal is designed to modernize rules that have been in place for decades. In practical terms, the changes focus on transfer agents, the entities that keep track of securities ownership and related records.
Under the proposed amendments, those firms could officially record securities ownership on blockchain. That would align the regulatory framework more closely with the mechanics of tokenized securities, where issuance and ownership tracking can be tied to blockchain-based infrastructure.
New reporting requirements for tokenized securities
Alongside the recordkeeping change, the SEC is also seeking stronger reporting from transfer agents that handle tokenized assets. The proposal would require them to tell the agency how many tokenized securities they manage.
They would also need to disclose which blockchain platforms are being used for those securities. The added reporting would give the SEC more visibility into where tokenized securities are being administered and what underlying networks are involved.
Why the proposal matters
The proposal is notable because it would create an institutional path for bringing parts of the U.S. securities market on-chain. Rather than treating blockchain records as peripheral or informal, the rule change would establish a regulatory basis for recognizing them as an official ownership ledger.
That point is especially important for the issuance and distribution of tokenized securities. A formal recognition of blockchain-based records could help connect existing securities administration rules with newer digital asset structures, while still keeping transfer agents inside the regulatory framework.
What comes next
For now, the SEC has issued a proposal rather than a final rule. The changes would only take effect if they are adopted.
If that happens, transfer agents would be able to use blockchain as an approved ownership recordkeeping system and would face the new disclosure obligations tied to tokenized securities and the platforms on which they operate.
Source: en.bloomingbit.io