SEC proposal would let blockchain serve as official securities ledger

The U.S. Securities and Exchange Commission has proposed replacing decades-old transfer agent rules with a framework that would recognize blockchain ledgers as official securities ownership records. Summary Blockchain databases could become the legally recognized ownership record for tokenized securities. Issuers may no longer need separate on-chain and official shareholder ledgers. Identity checks and transfer limits would continue to apply to blockchain-based securities. The SEC has opened a 60-day public comment period ending in early November. SEC proposal could remove duplicate ownership records The SEC said its proposed transfer agent overhaul would recognize electronic databases, including distributed ledgers, as systems that can hold the official record of securities ownership. The change would update rules created before blockchain-based securities entered U.S. capital markets. Under many current tokenization models, an on-chain token does not serve as the final legal record of ownership. Transfer agents and issuers instead maintain a separate shareholder register outside the blockchain, while the digital token tracks transfers on-chain. Operating both systems requires the...