In light of the increasing use of blockchain technology and electronic records in securities transactions, the U.S. Securities and Exchange Commission (SEC) has recommended revising its regulations for registered transfer agents.
The modifications would provide transfer agents with a more transparent regulatory framework for utilizing blockchain to enable the transfer of tokenized securities and preserve records of securities ownership. According to SEC Chairman Paul Atkins, the plan would update regulations that haven’t been significantly changed since the late 1970s and early 1980s.
This proposal would streamline and modernize the Commission’s rules to reflect transfer agents’ current processes and operations, including the use of electronic communications and blockchain technology in connection with securities offerings and the transfer of shares. https://t.co/nnqBUeXeXX
— Paul Atkins (@SECPaulSAtkins) September 1, 2026
Transfer agents play an important role in financial markets. They maintain records showing who owns securities and handle administrative work when ownership changes. However, the way these records are maintained has changed significantly over the decades. Paper certificates have largely given way to electronic systems, while blockchain is now emerging as another way to record ownership and transfers.
The SEC proposal would update existing rules and forms and introduce two new rules, while also removing one existing rule. The changes cover areas such as electronic recordkeeping, communications and the services provided by transfer agents. Importantly, the SEC is not proposing a separate regulatory category specifically for blockchain-based transfer agents. Instead, it would bring blockchain technology within the existing regulatory framework.
This is particularly relevant as traditional financial institutions increasingly explore tokenization. Tokenized securities are digital representations of securities that can be recorded and transferred using blockchain networks. The SEC’s proposal could provide greater clarity for firms that use distributed ledger technology to maintain ownership records or support securities transfers.
Source: sec.gov
The proposal also raises practical questions about how transfer agents should operate in an onchain environment. SEC Commissioner Hester Peirce, for example, asked whether transfer agents should be able to collect digital identifiers such as email addresses or wallet addresses instead of relying only on traditional information such as physical addresses.
The move comes as the SEC is pursuing a wider effort to update its approach to digital assets and tokenized securities. The agency recently proposed a new Regulation Crypto Assets framework and has been working on rules aimed at providing clearer pathways for crypto-related markets.
For the wider financial industry, the proposal is another sign that blockchain is moving from an experimental technology toward a more recognised part of securities-market infrastructure. However, the proposal does not immediately change the rules or automatically approve any particular blockchain-based system.
The SEC’s proposal will now go through a public comment process. Comments will remain open for 60 days after the proposal is published in the Federal Register. The final impact on transfer agents and firms dealing in tokenized securities will depend on the amendments the SEC ultimately adopts.
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