SEC Needs More Time to Review Registration Application for DTC Clearing

The SEC extended the deadline for considering whether to grant or deny an application filed by Paxos Securities Settlement Company, LLC ("PSSC") for registration as a clearing agency.

PSSC proposed to register as a clearing agency pursuant to SEA Section 17A ("National system for clearance and settlement of securities transactions"). In its application, PSSC proposed to "provide services using a private, permissioned settlement service that supports a distributed ledger ... designed to conduct delivery versus payment settlement on a bilateral basis." PSSC said it planned to "become a participant in the Depository Trust Company ("DTC") [to] make its services available to other DTC participants."

The SEC said that PSSC’s "novel structure" affects how it conducts risk management and surveillance, as well as how it handles participant defaults. The SEC said it needed the additional time to consider whether the application "satisfies the requirements of Section 17A."

The SEC extended the deadline from February 2, 2026, to May 3, 2026.