SEC transfer-agent rule could cut tokenized-securities recordkeeping

The SEC is proposing to modernize transfer agent rules to officially recognize blockchain as a record of securities transactions and has opened a 60-day comment period on the plan. The proposal is the latest signal the agency is preparing for round-the-clock U.S. equities trading and how transfer agents — which record and settle share-ownership changes — would operate in that environment.

Analysts say the rule change could also ease legal headaches for tokenized securities, eliminating duplicate offchain shareholder records and reducing reconciliation costs and legal uncertainty. The proposed rule recognizes blockchain-based ledger records as valid for tracking and settling securities ownership, and the SEC is also planning a roundtable on 24-hour trading alongside the framework.