Read this article on bsc.news Ondo Finance has asked the US Securities and Exchange Commission (@SECGov) to make sure holders of tokenized stocks and exchange-traded funds can connect directl
Ondo Finance has asked the US Securities and Exchange Commission (@SECGov) to make sure holders of tokenized stocks and exchange-traded funds can connect directly with transfer agents. In a comment letter filed on Tuesday, @Ondo, the team behind $ONDO, responded to the regulator's plan to overhaul rules that have governed transfer agents for decades.
Transfer agents are the firms that maintain companies' shareholder records. The letter asks that holders of tokenized stocks and ETFs receive the same access to transfer agents that the Depository Trust Company (DTC) settlement system gives traditional brokers today.
According to a report from TechFlow, Ondo's letter advocates for improved connectivity between tokenized security holders and issuers' transfer agents. TechFlow also reported that Ondo wants information requirements and legal reviews for routine transactions to match the nature of the transaction, avoiding repeated collection of verified personal information or duplicate legal work without a clear purpose.
Ondo also wants the rules to support public blockchains without requiring transfer agents to control the entire network, and to provide workable compliance routes for smaller service providers, per the same report.
The SEC proposed the changes on September 1. The Block reported that the agency says the rules have not been significantly updated since they were proposed in the late 1970s. SEC Chair Paul Atkins said the proposal would reflect transfer agents' current processes, including the use of electronic communications and blockchain technology in securities offerings and share transfers.
Law firm Morgan Lewis noted that the core processing, recordkeeping and safeguarding requirements date back to the late 1970s and early 1980s, when securities were represented by physical certificates and records were processed manually. A disclosure in Federated Hermes' quarterly filing with the SEC states that the public comment period ends on November 3, 2026.
Ondo has engaged with the SEC on tokenization before. In December 2025, it submitted a roadmap letter that, according to Ondo's own blog, encouraged the SEC to modernize transfer agent rules for tokenization and provide clarity for tokenized products backed by securities held in DTC.
The SEC has not adopted the proposal, and its final form could change after the comment process, according to Crypto Daily.
TechFlow: Ondo Files Comments on Transfer Agent Rules with SECThe Block: SEC Seeks to Update Its 1970s-Era Transfer Agent RulesMorgan Lewis: SEC Proposes Comprehensive Modernization of Transfer Agent Rules
