The U.S. Securities and Exchange Commission is seeking to update its rules for transfer agents to keep pace with new technology, including blockchain and tokenization.
On Tuesday, the SEC proposed changes to its transfer agent rules, which it says have not been significantly updated since the rules were proposed in the late 1970s. Transfer agents serve as recordkeepers for securities, maintaining ownership records and handling corporate actions such as mergers and dividend distributions. They also play a key role in the clearing and settlement process.
"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," said SEC Chair Paul Atkins in a statement.
The rule changes would "modernize" certain terminology "in light of technological advancements" and update rules on the use of electronic systems, according to a fact sheet.
AI, tokenization advances
