SEC proposes overhaul of transfer agent rules to support blockchain, electronic records

The news marks the first major proposed overhaul in almost three decades, but will it make it over the finish line?

The SEC is proposing its first major review of transfer agent rules in decades, bringing the framework closer to the way securities are now issued, recorded and transferred, including through blockchain technology.

The proposal has been welcomed by Computershare, which told Governance Intelligence the changes could clarify transfer agents’ responsibilities while supporting innovation and operational resilience.

‘The SEC’s proposal represents an important milestone to modernize the transfer agent regulatory framework and ensure it reflects the critical role transfer agents play in today’s securities capital markets,’ says Fiona Chalmers, CEO of issuer services at Computershare.

‘A modernized framework can help strengthen and clarify these obligations while giving transfer agents the regulatory foundation needed to support innovation and operational resilience in an increasingly global environment.’

The SEC says its existing transfer agent rules have not been significantly updated since rules were first adopted in the late 1970s and early 1980s. Transfer agents remain responsible for maintaining official ownership records and supporting the transfer of securities between issuers and investors.