SEC Proposes Blockchain Integration for Securities Ownership Records

Key Insights

• SEC crypto regulation proposal could make blockchain an official ownership record.
• Transfer agents may have to report tokenized assets and blockchain platforms used.
• US SEC rules could modernize oversight as tokenized securities infrastructure grows.

SEC crypto regulation moved deeper into U.S. securities infrastructure after the agency proposed a broad modernization of rules governing registered transfer agents.

The Sept. 1 proposal would update regulations that have seen few substantive changes since the late 1970s and early 1980s. It addresses electronic communications, digital recordkeeping, tokenized securities, distributed ledger technology, risk controls, and transfer-agent reporting.

One of the most relevant changes for tokenization would allow transfer agents to use distributed ledger technology within the master securityholder file. That file remains the authoritative record of registered owners rather than the blockchain automatically receiving legal status on its own.

Crypto Regulation Proposal Updates Transfer Agent Rules

The proposal would amend existing rules and forms, rescind one rule, and introduce additional requirements. It also reflects the widespread use of electronic recordkeeping and communications across transfer agent operations.