Ondo Finance files SEC comment letter advocating for modernization of transfer agent regulations to enable tokenized securities.
Regulation & Gov ·
Ondo Finance submitted a comment letter to the Securities and Exchange Commission advocating for modernization of transfer agent regulations that have remained largely unchanged for approximately fifty years. The filing urges updates to rules governing how securities are transferred and held, with the stated goal of enabling tokenized securities to operate within the existing regulatory framework.
Transfer agent rules establish the operational and custody standards that intermediaries must follow when handling securities transfers and maintaining investor records. Ondo's argument centers on the premise that these decades-old regulations were written before blockchain technology existed and do not adequately account for how tokenized assets—digital representations of traditional securities held on public blockchains—could function within compliant infrastructure.
The letter represents a formal effort to shape regulatory guidance rather than seek an exemption. Whether the SEC will incorporate Ondo's recommendations into rulemaking, or what timeline such updates might follow, remains unspecified. The comment adds to broader industry advocacy around how tokenization of traditional assets can integrate with U.S. securities law.