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      U.S. SEC Proposes Rule Change to Allow Blockchain as Official Record for Securities Ownership

      The U.S. Securities and Exchange Commission (SEC) has proposed a significant amendment to its transfer agent rules, which have been in place for decades. This new rule would permit electronic databases, including blockchain ledgers, to serve as the official record of securities ownership for the first time. If enacted, this change could lead to blockchain becoming the primary document for securities ownership, replacing the current reliance on off-chain records used by tokenized securities.

      Currently, many tokenized securities maintain two sets of records: on-chain token ledgers and traditional shareholder registers. The proposed rule aims to eliminate the need for these duplicate records, thereby reducing operational friction and minimizing the risk of discrepancies between on-chain and legally recognized records. Eli Cohen, Chief Legal Officer of the tokenized fund platform Centrifuge, noted that this could streamline the process from a two-step to a one-step operation, with blockchain acting as the master security document.

      Despite this advancement, the proposal does not imply that tokenized securities will be entirely permissionless. Joris Delanoue, CEO of the registered on-chain transfer agent Fairmint, emphasized that while blockchain can remain open, compliance with ownership and transfer regulations will still be necessary. Regulatory controls such as identity verification and transfer restrictions will continue to be embedded in the tokens. Additionally, transfer agents will still be responsible for administrative tasks, including handling shareholder death and inheritance, with potential processing times reduced from 3-5 days to just 1 day. The public will have 60 days to comment on the proposal, which is set to conclude in early November.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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