ChainCatcher report: Last week, the U.S. Securities and Exchange Commission (SEC) proposed a new rule to comprehensively revise transfer agent regulations that have been in place for decades, explicitly permitting electronic databases—including blockchain ledgers—as official records of securities ownership for the first time. If approved, blockchain could become the “primary securities record,” replacing the off-chain parallel ownership records currently relied upon by tokenized securities. Today, many tokenized securities operate on two parallel systems: an on-chain token ledger and the official shareholder register. Upon adoption of the proposal, issuers and transfer agents may no longer need to maintain duplicate records or reconcile them after each transfer, thereby reducing operational friction and the risk of discrepancies between on-chain records and legally recognized records. Eli Cohen, Chief Legal Officer at the tokenized fund platform Centrifuge, stated that the proposal could transform the current “two-step” process into a “one-step” process, with the blockchain itself serving as the primary securities record. However, the proposal does not imply that tokenized securities are fully “permissionless.” Joris Delanoue, CEO of Fairmint, an SEC-registered on-chain transfer agent, noted that while blockchains can remain open, assets must still comply with ownership and transfer rules, and regulatory controls such as identity verification and transfer restrictions remain embedded within the tokens. Transfer agents will still handle administrative matters such as shareholder death, inheritance, and legal notices, with processing times potentially reduced from 3–5 days to just 1 day. The 60-day public comment period for this proposal ends in early November.
U.S. SEC Proposes Rule Changes to Permit Blockchain Ledgers as Official Security Records
ChaincatcherShare
Summary
The U.S. SEC has proposed permitting blockchain ledgers as official security records, aiming to replace the current dual on-chain and off-chain systems for tokenized assets. The update targets transfer agent rules, streamlining ownership tracking through electronic databases. This move aligns with CFTC efforts to enhance transparency. BTC as a hedge against inflation continues to attract attention amid macroeconomic shifts. The 60-day comment period closes in early November.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.