SEC Seeks to Modernize Transfer-Agent Rules to Reflect Blockchain Use

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The U.S. Securities and Exchange Commission is seeking to modernize rules governing transfer agents to reflect the use of electronic records, digital communications and blockchain technology, Cointelegraph reported on September 1.

The SEC proposed revising existing rules to account for the broader use of electronic records and communications in securities issuance and stock transfers, as well as emerging blockchain applications.

Transfer agents manage ownership records for securities such as stocks and handle transfers between investors.

The proposal is aimed at updating the existing regulatory framework for the digital era. The scope of blockchain applications and related requirements are set to be discussed as the rulemaking process advances.