SEC proposes blockchain-era overhaul of transfer-agent rules

Transfer agents maintain issuers' official ownership records and process securities issuance, cancellation and transfers. The proposal would make Rule 17ad-12 a broader risk-management rule, require business-continuity planning and separate accounts for client funds, and create new compliance and restrictive-legend rules.

Tokenization enters the rulebook

Commissioner Hester Peirce said the rules need to reflect a market in which shares may be tokenized and asked whether wallet addresses or email addresses could supplement traditional securityholder identifiers. That is an invitation for comment, not an exemption for tokenized securities or approval of a particular blockchain model.

Comments remain open for 60 days after Federal Register publication. The final requirements, implementation schedule and treatment of onchain systems can still change before any rule is adopted.