SEC · AI Agent · Federal Reserve (FED) · Cointelegraph
SEC proposes broad update to decades-old transfer agent rules with blockchain nod
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The proposal would modernize rules largely unchanged since the 1980s, addressing blockchain-based recordkeeping, tokenized securities and increasingly automated market infrastructure.
Key facts
- The regulatory agency is seeking public comment on the proposed changes, with comments due 60 days after the proposal is published in the Federal Register
- The US Securities and Exchange Commission (SEC) has proposed overhauling decades-old rules governing transfer agents as blockchain-based recordkeeping and tokenized securities become more prominent
- The SEC is “on a mission to simplify its rules,” according to analysis from law firm Cahill Gordon & Reindel sent to clients on Tuesday
- In May, the SEC proposed three major changes to public-company rules
Summary
The US Securities and Exchange Commission (SEC) has proposed overhauling decades-old rules governing transfer agents as blockchain-based recordkeeping and tokenized securities become more prominent in US markets. The proposal would update requirements covering registration, recordkeeping, safeguarding and securities transfers, while introducing new rules aimed at risks emerging from increasingly digital and automated market infrastructure. “Market participants are actively seeking to bring blockchain-native, or ‘onchain’ transfer agents into the U.S. market,” the SEC said, pointing to models for blockchain-based recordkeeping, tokenized fund administration and cross-chain interoperability. The agency said its existing framework does not adequately address those developments, particularly risks involving cybersecurity, operational resilience and the safeguarding of securities and investor records.