In a statement supporting the U.S. Securities and Exchange Commission’s proposed modernization of transfer agent rules, commissioner Hester Peirce said the overhaul would align the decades-old framework with electronic ownership records, tokenized securities and current market practices. The proposal follows longstanding calls to update rules designed when paper share certificates were the norm. The amendments would require registered transfer agents to establish compliance policies and procedures and prohibit them from improperly removing restrictive legends from shares, strengthening safeguards against microcap fraud. Transfer agents would need a reasonable basis for their actions without assuming responsibilities outside their mandate. Peirce sought feedback on adapting the framework for onchain trading, including whether digital wallet or email addresses could serve as securityholder identifiers. Other questions address investor notifications after inactivity, developments in state escheatment laws and disclosure of certain service providers on Form TA-2.
2026-09-01U.S. Securities & Exchange Commission
U.S. Securities and Exchange Commissioner Hester Peirce backs transfer agent overhaul for tokenized securities and fraud controls
U.S. Securities and Exchange Commissioner Hester Peirce backed the agency’s proposed modernization of transfer agent rules to reflect electronic records, tokenized securities and current market practices. The proposal would add compliance requirements and controls over restrictive legend removal to combat microcap fraud, while seeking feedback on onchain trading, securityholder identifiers and inactivity standards.