SEC Proposes Rulemaking to Allow Blockchain Records for Transfer Agents

The U.S. Securities and Exchange Commission (SEC) released a proposal that would let registered transfer agents use blockchain‑based systems for maintaining securities ownership records. The rulemaking, published on September 1, opens a 60‑day comment period and aims to update federal rules that have not been substantially revised since the late 1970s.

Focus on Ownership Records, Not Token Status

According to Bitget Research chief analyst Ryan Lee, the proposal targets the official register that shows who legally owns each share, not the token itself. Existing tokenized‑stock products outside the United States typically provide price exposure through synthetic or custodial structures, where a platform holds the underlying security and investors hold a claim‑bearing token.

Potential Benefits of a Blockchain Register

• Transfer agents could record share transfers on a blockchain, creating an immutable, electronic ledger.
• Connecting tokens to an authoritative register could allow legal ownership to appear on the same record used for conventional shares.
• Modernized plumbing may reduce operational friction for cross‑border tokenized shares.

Offshore Demand Highlights Market Interest

Bitget reported $1.16 billion in tokenized‑stock trading volume between June 2 and July 19, representing about 20 % of its total trading activity. The bulk of this volume involved semiconductor and technology companies, and the exchange posted the lowest median bid‑ask spread (0.83 basis points) among five tokenized‑equity markets surveyed.

Challenges to Fungibility and Shareholder Rights

Even if transfer agents adopt blockchain, tokens would not automatically become legal shares or confer voting, dividend, or other shareholder rights. Cross‑border recognition of a token as the same security held in the U.S. remains unresolved, and regulators would need to address how corporate actions are applied consistently across jurisdictions.

Industry Moves Toward Registry Infrastructure

Bullish announced a planned acquisition of Equiniti, a regulated transfer‑agent firm that maintains records for over 2,500 companies and 20 million shareholders. The $4.2 billion transaction, expected to close in early 2027 pending approval, underscores the strategic value of ownership registers in the emerging tokenized‑equity ecosystem.