SEC Moves to Update Transfer Agent Rules Ahead of 24/7 U.S. Trading Push

The U.S. Securities and Exchange Commission has announced the agenda and participants for its upcoming roundtable on 24-hour trading, while also proposing changes to transfer-agent rules that could have important implications for blockchain-based markets.

The SEC said Tuesday that its Sept. 17 roundtable, to be held at the agency’s Washington headquarters, will bring together major players from across the securities industry and its financial infrastructure. Participants are expected to include NYSE, Nasdaq, State Street, Citadel Securities, Cboe and DTCC, along with newer market entrants such as Robinhood.

For the crypto industry, which operates on a 24/7 basis, the potential move toward continuous trading would represent a major shift for traditional financial markets. Crypto broker-dealers could also face regulatory changes stemming from the SEC’s work on the initiative.

Discussions at the roundtable will cover issues surrounding overnight market surveillance, closing-price procedures, trade clearing and settlement, as well as the operational requirements of maintaining a continuously functioning market, including system maintenance.

SEC Targets Transfer-Agent Rules

The SEC also proposed a new transfer-agent rule Tuesday that would update the regulatory framework to account for blockchain and other technological developments.

Transfer agents are responsible for maintaining records of securities ownership. Their traditional role is being challenged by onchain transactions, which can record and transfer ownership almost instantly and transparently, particularly as tokenized securities gain traction.

The proposal, which will remain open for public comment for 60 days, would modernize a rule that has not undergone a major update in decades. SEC Chairman Paul Atkins said the changes would account for technologies including electronic communications and blockchain in securities offerings and share transfers.

Under the proposal, blockchain-based records could serve as official transaction records. At the same time, transfer agents would face additional operational requirements, including measures related to cybersecurity.

SEC Commissioner Hester Peirce highlighted a key issue for the crypto industry, asking whether transfer agents should still be required to collect securityholders’ names and physical addresses or whether alternative identifiers, such as email addresses and digital wallet addresses, should also be permitted.

The development comes as crypto companies expand into traditional financial infrastructure. Bullish, the parent company of CoinDesk, recently agreed to acquire transfer agent Equiniti in a deal valued at $4.2 billion.