SEC proposes modernizing transfer agent rules for blockchain, AI

The U.S. Securities and Exchange Commission has proposed a comprehensive overhaul of rules governing securities transfer agents, marking the most significant update to this regulatory framework since the late 1970s and early 1980s. The proposal, released on September 1, 2026, aims to modernize recordkeeping, reporting, and settlement processes to accommodate electronic communications, blockchain technology, and artificial intelligence. Transfer agents are critical intermediaries in financial markets, responsible for maintaining official records of securities ownership, processing share transfers, and managing corporate actions like dividends and mergers. The SEC stated that its existing rules for these entities have not been substantively updated for decades, a period during which market infrastructure has shifted from paper certificates to electronic systems. The new proposal seeks to align the regulatory framework with current technological realities. SEC Chairman Paul Atkins explicitly linked the initiative to the rise of tokenized securities, where traditional assets like stocks are represented on a blockchain.