Harbor Obtains SEC Transfer Agent License Approval, a Step Closer to Reg A+ Offerings


Harbor – deemed a platform that unlocks liquidity options for illiquid assets – has supposedly gotten a step closer to getting hold of a transfer agent license from the U.S Securities and Exchange Commission (SEC) reports The Block. The news was shared on Thursday, October 31, by CEO Joshua Stein.

What role does holding a transfer agent license play for such a platform? Turns out that it allows companies to manage information regarding their stock ownership and dividends that have been paid out to investors. According to what’s been shared by Stein, the SEC requires that companies with a license, do engage in Reg A+ offering.

Stein views Reg A+ as a more convenient route for raising public funds, which could be something that blockchain firms can consider since ICOs haven't really been running since 2017.

For the time being, only two firms, Blockstack and YouNow have been able to secure such a license with the SEC to conduct Reg A+ and interestingly, they do not find that it is all that necessary reports the news outlet.

Stein trusts that if the token under consideration is very similar to that of security, only then will a transfer agent license be required. In particular, he said:

“I think that the more the token resembles a security, the more likely traditional securities law requirements like transfer agents will be required.”

In the case of Harbor, the reason for seeking for said license supposedly complements their broker-dealer license received a month ago. For Stein, it all rests in the security token’s full life cycle:

“Think of the entire life cycle of this, there is […] selling the investors into the investment, maintaining the investment while they are in, and controlling how they are traded. The broker-dealer is mostly involved in gaining the investors into the investment. The transfer agent maintains the records while they are in and pays out dividends, and the transfer agent controls when they pay out.”

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