Yesterday, the Securities and Exchange Commission (SEC) proposed the first real update of its transfer-agent rules since the late 1970s and early 1980s. The move would facilitate new rules that enable tokenized assets and blockchain technology.
Transfer agents are regulated entities that perform an important task of tracking the movement of securities.
In commenting on the proposal, SEC Chairman Paul Atkins mentioned blockchain technology specifically and the need “streamline and modernize” the current process.
Jamie Selway, Director of the SEC’s Division of Trading and Markets, said that as technology changes, government must adapt.
“This proposal is another important step in Chairman Atkins’ efforts to advance our regulatory framework for the modern era.”
Securitize, a registered transfer agent, said they are “encouraged to see the Commission recognize that these rules should evolve as the industry adopts new technologies, including blockchain.”
Securitize noted they were the first transfer agent using blockchain technology.
The prior Commission during the Biden Administration sought to undermine digital asset innovation. The Commission under the leadership of Chair Atkins has taken a different approach recognizing that change is inevitable and it can benefit all aspects of market participants.
The rule is viewable here.
The SEC Fact Sheet on the new Transfer Agent Rules is available below.
