SEC Plans to Update Transfer Agent Rules, Incorporating Blockchain into Securities Regulatory Framework

As reported by CoinDesk, on September 1, the U.S. Securities and Exchange Commission (SEC) proposed the first major update to transfer agent rules since the 1970s, with Chairman Paul Atkins explicitly stating that the rules should cover the application of blockchain technology in securities issuance and share transfers. In an article, Fairmint co-founder Joris Delanoue noted that if ownership data is distributed across token wrapping layers, SPVs, broker-dealer internal ledgers, and off-chain databases, it would replicate the history of the late 1960s "paper crisis." He emphasized that tokens themselves should function as the official ledger mandated by Section 17A of the Securities Exchange Act, rather than serving as wrappers for off-chain securities. The article calls on the industry to consolidate ownership data around unified open standards and recommends that the SEC distinguish between on-chain native registration and third-party wrapping models in Form TA-2, permit the use of cryptographic credentials and other modern identity identifiers, and integrate smart contract pre-trade restrictions into compliance enforcement mechanisms.