The proposed rules shift from a focus on paper certificates to a risk-management framework that encompasses electronic records, cybersecurity, and business continuity. While the SEC maintains a technology-neutral stance, the amendments specifically target the operational realities of blockchain-native agents, such as the use of smart contracts and distributed ledgers. Firms must now implement rigorous controls to protect data integrity, ensuring that records remain accessible and immune to unauthorized tampering.
In section Cryptocurrency
SEC Seeks 40-Year Update to Transfer Agent Rules for Tokenized Assets
The U.S. Securities and Exchange Commission has unveiled its first major overhaul of transfer-agent regulations in four decades, aiming to pull outdated 1970s standards into the era of blockchain recordkeeping and tokenized securities. The proposal seeks to manage systemic risks as digital assets increasingly integrate into regulated financial markets.
Beyond data security, the SEC is addressing the growing reliance on third-party technology providers. With nearly half of all transfer agents currently outsourcing portions of their operations, the new framework mandates stricter oversight, ensuring that firms remain accountable for their vendors. These measures come as traditional market players, including Intercontinental Exchange and tZERO, move to build infrastructure for tokenized securities. The public has 60 days to comment on the proposal once it appears in the Federal Register, marking a critical step in defining how legal ownership will be tracked in a tokenized U.S. market.
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