SEC Proposes Letting Blockchains Serve as Official Shareholder Registers

Overview

• The Securities and Exchange Commission published a proposal to allow transfer agents to use electronic databases, including distributed ledgers, as the official record of who owns securities.
• Transfer agents that use blockchains would still have to register with the SEC and meet existing duties on record accuracy, custody segregation, cybersecurity, corporate actions, and legal orders.
• The agency opened a 60-day public comment window on the rule, and it may revise the draft after reviewing submissions before deciding on a final rule.
• Market firms are already positioning for registry control: Bullish announced an acquisition of transfer-agent Equiniti and Cosmos formed a 17‑company partner network with a planned Wells Fargo pilot.
• Key unresolved issues include whether on-chain tokens will be treated as the legal share, how wallet identities link to legal owners, how to restore access if keys fail, and how U.S. and offshore token products would be made legally fungible.