SEC Grants Paxos Temporary Registration as a Clearing Agency
The SEC has granted Paxos Securities Settlement Company, LLC temporary registration as a clearing agency under the Securities Exchange Act of 1934, marking a significant step toward blockchain-based securities settlement entering the regulated clearing infrastructure. While the official summary is limited, this signals the SEC is willing to bring crypto-native settlement firms into the traditional regulatory perimeter. Compliance officers at broker-dealers, crypto custodians, and exchanges should note this development as it may affect counterparty risk assessments and future settlement obligations.
What to do
- Review your counterparty and vendor risk framework to assess whether Paxos or blockchain-based settlement services are in scope, and monitor the terms of the temporary registration for compliance obligations that may flow to participants.
Who this affects
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Source
Read the official publicationThis radar entry is educational and does not constitute legal advice. Summaries are AI-assisted and grounded in the linked official source; always verify against the primary source and consult qualified legal counsel for jurisdiction-specific guidance.