2026-10808NoticeWallet

Paxos Wins Temporary SEC Clearing-Agency Approval

Published Date: 5/29/2026

Notice

Summary

Paxos Securities Settlement Company just got the green light for temporary registration as a clearing agency, meaning they can now help settle and clear securities trades safely and smoothly. This affects investors and financial firms who rely on quick, secure trade settlements. The approval kicks in right away, setting the stage for Paxos to shake up how trades get finalized, with no immediate cost changes announced.

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Regulatory Exemptions for 18 Months

The Commission granted PSSC temporary registration with an exemption from Sections 17A(b)(3)(A) and 17A(b)(3)(F) of the Exchange Act for a period not to exceed 18 months. That exemption was part of the temporary registration approval.

No Central Counterparty or Credit

PSSC will not act as a central counterparty and will not extend intraday or overnight credit to participants. Participants will have credit exposure only to those counterparties they approve in advance and will have no counterparty credit exposure to PSSC.

Faster Settlement and Immediate Access

PSSC offers settlement on the trade date (T+0), the next business day (T+1), or another agreed business day, and once settlement is final participants have immediate access to settlement proceeds. The Daily Settlement Cut-Off Time is defined as 3:10 p.m. Eastern Time.

Paxos Temporarily Registered Now

Paxos Securities Settlement Company (PSSC) was granted temporary registration as a clearing agency effective May 27, 2026. The registration is effective immediately and may last for up to 18 months from the effective date.

Must Pre-Approve Settlement Counterparties

Only pre-approved counterparty pairs ("CP Pairs") are eligible to settle in PSSC. Trades submitted to PSSC that are not between established CP Pairs will be rejected, and participants must give written notice to form or terminate CP Pairs.

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Key Dates

Effective Date
Published Date
5/27/2026
5/29/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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