The U.S. SEC proposed its first significant revision to transfer agent rules since the 1970s on September 1, aiming to integrate blockchain technology into securities registration and settlement systems. The proposal allows transfer agents to use distributed ledger technology for recording and transferring securities while emphasizing the need to prevent fragmented ownership data caused by token wrapping, SPVs, broker ledgers, and offline databases. Industry participants such as Fairmint argue that on-chain cap tables should serve as the official ledger under Section 17A of the Exchange Act rather than treating tokens merely as wrappers for off-chain equity. Stakeholders are urging the SEC to distinguish between native on-chain registration and off-chain asset token wrapping models in Form TA-2, update holder identification methods, and recognize smart contracts as valid tools for automating compliance and restricting transfers.