SEC Proposes Overhaul of 1970s-Era Transfer Agent Rules to Regulate Tokenized Securities

The US Securities and Exchange Commission formally proposed modernizing its transfer agent rules to accommodate blockchain-native workflows and tokenized securities. The existing regulatory framework hasn't seen a substantive update since the late 1970s and early 1980s, an era when the financial industry relied heavily on manual recordkeeping and paper certificates. Under the new proposal, transfer agents face expanded reporting requirements covering cybersecurity, operational resilience, and the safeguarding of digital investor records. The agency will keep the public comment window open for 60 days following the proposal's publication in the Federal Register. “Market participants are actively seeking to bring blockchain-native, or ‘onchain’ transfer agents into the U.S. market.” — SEC