SEC Proposal Would Let Blockchain Serve as the Official Ownership Record for Tokenized Stocks

The U.S. Securities and Exchange Commission has moved to resolve a long-running issue in tokenized equities: which database counts as the legal record of ownership. Tokenized stocks often involve two parallel records—an on-chain ledger showing which wallet holds the token and an off-chain register maintained by a legally recognized transfer agent. Under the SEC's proposal, electronic recordkeeping systems, including blockchain ledgers, could qualify as the official securities ownership record. In that setup, the blockchain could function as the "master securityholder file," reducing reconciliation work and lowering legal and operational risk—an issue that can become especially acute in events such as bankruptcy, when conflicting records may trigger disputes. The proposal does not remove transfer agents from the process or eliminate all off-chain records. Transfer agents would still maintain documents such as the control book, which tracks authorized and outstanding securities, and a transfer journal documenting issuance, cancellations, and transfers. The stated aim is to eliminate duplicative ownership registers rather than every database used in securities administration. Blockchain-based securities would also remain subject to existing securities laws. Industry participants say the change underscores the need for clearer disclosures around what tokenized stocks represent. Fairmint co-founder and CEO Joris Delanoue wrote on X that "1:1 backed" is not the same as "1:1 ownership," arguing that investors need to understand whether a token conveys direct legal ownership of the underlying security or merely economic exposure via an intermediary—an important distinction if the ownership record itself becomes authoritative. The SEC's initiative comes as the agency is also revisiting crypto custody policy. Proposed amendments to the Custody Rule are under White House OIRA review and are expected to be published by October 2026. Separately, Thailand has announced plans to tighten crypto regulations starting 27 February 2027. The measures would require licensed exchanges to track P2P transfers and identify counterparties, including users' self-hosted wallets. Under a new Travel Rule for Digital Assets, exchanges would need to record and retain sender and beneficiary information for at least five years to bolster anti-money-laundering controls. In summary, the SEC's proposal would allow blockchain ledgers to serve as the official record of securities ownership, while the agency advances parallel work on revisions to crypto custody rules.