SEC proposes broad update to decades-old transfer agent rules with blockchain nod
The SEC has proposed modernizing long-standing transfer agent rules to better fit blockchain-based recordkeeping, tokenized securities, and other digital market infrastructure. The changes would update requirements for registration, recordkeeping, safeguarding, and securities transfers, while adding new standards to address cybersecurity, operational resilience, investor record protection, and third-party service provider risks. Transfer agents would also face expanded reporting obligations and new compliance rules, including around restrictive legends. The SEC said its current framework dates to the late 1970s and early 1980s and does not adequately cover onchain transfer agents, tokenized fund administration, or cross-chain interoperability. Public comments are due 60 days after publication in the Federal Register. The proposal is part of a broader SEC push to simplify and update securities rules, including changes to public-company reporting and custody rules that may affect crypto assets.
