SEC proposes blockchain ledgers as official securities ownership records

The U.S. Securities and Exchange Commission (SEC) has proposed amendments to transfer agent rules that would allow blockchain ledgers to serve as official, legal records of securities ownership. This move aims to address the current “dual ledger” problem, where tokenized securities often require maintaining both an on-chain record and a separate, traditional off-chain shareholder register.

If adopted, the proposal would recognize blockchain as a “master security file,” potentially streamlining processes for issuers and transfer agents by eliminating the need for constant reconciliation between different databases. This change focuses specifically on recordkeeping rather than trading or settlement mechanics.

However, the proposal does not imply a shift toward permissionless trading. Transfer agents would still be responsible for managing complex regulatory duties, such as handling inheritances, legal notices, and ownership restrictions. The SEC has opened a 60-day public comment period for the proposal, which is expected to conclude in early November.