The SEC Is finally modernizing transfer-agent rules. Wall Street must not repeat the ‘paperwork crisis’
The SEC proposed its first major update to transfer-agent rules since the 1970s, explicitly recognizing blockchain use in securities issuance and share transfers. The proposal does not endorse tokenization, but aims to fit distributed ledgers within existing securities rules rather than create a separate crypto framework. The piece argues that tokenized shares need one authoritative ownership record: fragmented data across tokens, SPVs, brokers and transfer agents could recreate the recordkeeping failures behind the 1960s Paperwork Crisis. It advocates allowing a public blockchain to serve as the official ledger while retaining regulated transfer agents to identify owners and enforce compliance, alongside a common standard for ownership data.
