SEC Proposes Maintaining Securities Ownership Records on Blockchain
The SEC has proposed a new rule that could allow securities ownership records to be maintained on the blockchain.
The U.S. Securities and Exchange Commission (SEC) has brought forward a proposal to allow records showing who owns securities and how they change hands to be used as official transaction records on the blockchain. According to reports from CoinDesk, the proposal has not yet taken effect and has been opened for a 60-day public comment period.
Under the current system, entities maintaining these records track changes in ownership. If the SEC’s proposal is adopted, blockchain technology could be used in official records linked to securities offerings and share transfers. This change could establish a new framework, particularly for the registration and ownership processes of tokenized assets.
SEC opens discussion on digital wallet addresses
One of the most notable parts of the proposal for the crypto sector was the reconsideration of information used to identify investors. SEC Commissioner Hester Peirce raised the question of whether email or digital wallet addresses could be used as alternative identifiers instead of the names and physical addresses of securities holders. This statement does not mean that wallet addresses have been accepted; it only indicates that it is one of the options the regulator is evaluating.
SEC Chair Paul Atkins stated that the proposal aims to modernize rules updated decades ago to incorporate electronic communication and blockchain technology into securities transactions. The regulation also envisions cybersecurity and operational controls for the activities of transfer agents.
As a separate process, the Commission will also evaluate the possibility of 24-hour trading in the U.S. A roundtable meeting to be held on September 17 will address the oversight of overnight trading, closing prices, clearing, and the maintenance of continuously operating systems. This meeting does not mean that 24-hour trading has begun; the matter is still in the evaluation phase.