Overview
- The SEC published the proposal on Sept. 1, 2026, and will take public comment for 60 days after it appears in the Federal Register before any final vote.
- The package formally allows transfer agents to keep master shareholder files on electronic systems or distributed ledgers under a technology‑neutral standard while keeping a registered transfer agent responsible for the official record.
- Proposed Rule 17ad‑31 would strengthen how restrictive legends are enforced for tokenized securities and could require technical controls, such as smart‑contract logic, to block or record restricted transfers.
- Changes to Form TA‑2 would force agents to disclose use of distributed ledgers, report issuer‑sponsored versus third‑party tokenized issues, and identify outside tokenization providers.
- The draft adds tighter safeguards for record integrity, cybersecurity, custody segregation and business continuity and raises practical questions about linking wallet addresses to legal identities and reconstructing records if a ledger or credentials fail.