SEC Proposes Overhaul of 40-Year-Old Transfer Agent Rules, Allowing Smart Contracts to Replace Stock Certificates

Summary

The SEC proposed the largest transfer agent rule reform since the 1970s to accommodate tokenized securities and on-chain shareholder records. New rules require Form TA-2 to disclose master securityholder files on distributed ledgers, and distinguish between issuer-sponsored and third-party-sponsore…

Key points

Understanding SEC integration of blockchain into traditional securities infrastructure is significant for issuers and infrastructure providers.
This reform could usher in a new era for tokenized securities, affecting settlement and governance in capital markets.
Issuers may consider adopting on-chain shareholder records, with smart contracts streamlining compliance and governance.

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Editorial note

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