The US SEC intends to make blockchain the official record for securities ownership, marking a key regulatory breakthrough for tokenized stocks.

The U.S. Securities and Exchange Commission (SEC) recently proposed reforms to rules for registered transfer agents, aiming to explicitly allow electronic databases—including blockchain—as official records of securities ownership. Currently, tokenized securities often have both on-chain token ledgers and off-chain official shareholder registers; the need to continuously reconcile these two systems increases operational costs and legal risks. If the new rules are approved, blockchain is expected to serve as the primary record for securities, eliminating the need for tokenized securities to maintain duplicate off-chain ownership records. SEC Chair Paul Atkins stated that the reforms aim to align transfer agent rules with advancements in electronic record-keeping and blockchain technology. However, this does not mean tokenized securities will become fully permissionless assets. Issuers and transfer agents must still comply with regulatory requirements such as investor identity verification, transfer restrictions, succession protocols, and shareholder notifications; blockchain will primarily function as a legally recognized ownership record infrastructure. The SEC previously noted that, provided they meet federal securities laws’ requirements for record-keeping, reporting, and audits, registered transfer agents may use distributed ledgers as official shareholder registers without maintaining additional off-chain "digital twin" records. The rule proposal is open for public comment for 60 days. If finalized, blockchain will further evolve from a "technical shell" for tokenized securities to a core component of U.S. securities market infrastructure, removing key legal and operational barriers to the full on-chain migration of traditional assets like stocks and funds.