SEC Proposes First Transfer Agent Rule Update in 40 Years, Eyes Tokenization
The SEC proposed its first major overhaul of transfer agent regulations in four decades, introducing new Form TA-2 disclosures that would require agents to report their use of distributed ledgers and blockchain-based share registers. The agency also scheduled a roundtable on around-the-clock U.S. equity trading to explore operational and technological feasibility.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
New Disclosure Requirements for Blockchain Activity
The SEC proposed amendments to Form TA-2, the primary disclosure form for transfer agents, that would require firms to report how many share registers they maintain on distributed ledgers. The proposal marks the first significant update to transfer agent rules in four decades and reflects the regulator's focus on understanding how custodians and intermediaries are adopting tokenization infrastructure.
Transfer agents are responsible for maintaining shareholder records, issuing stock certificates, and processing transfers. The new questions are designed to create standardized visibility into blockchain adoption among these intermediaries, though the SEC did not issue a formal timeline for implementation.
24-Hour Trading Roundtable
The SEC also placed on its agenda a roundtable focused on around-the-clock U.S. equity trading. The event will examine operational, technological, and regulatory obstacles to extending trading hours beyond the current 9:30 a.m. to 4 p.m. Eastern window. The roundtable does not indicate the agency is proposing a rule change, but rather seeking input from market participants on feasibility and potential consequences.
Why It Matters
For Traders
Extended trading hours and tokenized settlement could eventually reduce settlement lag and broaden liquidity windows, though regulatory approval and infrastructure readiness remain years away.
For Investors
SEC scrutiny of transfer agent blockchain use signals regulatory preparation for tokenized equity markets; current proposals are non-binding but set expectations for future infrastructure.
For Builders
Tokenization platforms and distributed ledger vendors should expect standardized SEC reporting requirements for transfer agents; compliance tooling around Form TA-2 amendments will likely become necessary.
This article is for information only and is not financial advice. Read the full disclaimer.
