Securities Regulation Daily Wrap Up, SEC NEWS AND SPEECHES—Luxembourg blockchain company can allow U.S. persons on DLT-based securities lending platform, (May 6, 2026)

By R. Jason Howard, J.D.

The SEC response cautions that the no-action position is subject to modification or revocation by SEC staff at any time

In response to a request from a Luxembourg-based blockchain company, the SEC has agreed to not recommend enforcement actions against HQLAx or Clearstream International under Section 17A(b)(1) in connection with HQLAx and Clearstream International allowing U.S. persons to be participants on the platform operated by HQLAx and Clearstream International.

HQLAx and Clearstream International operate a platform that uses distributed ledger technology to facilitate the settlement of securities lending and repurchase transactions and to deliver liquidity management and collateral management solutions for institutional clients in the global securities financing markets.

As operators of their platform, HQLAx and Clearstream International recognize that they may be deemed to be acting as a “clearing agency” within the meaning of that term in Section 3(a)(23) of the Exchange Act. Pursuant to Section 17A(b)(1) of the Exchange Act, “it shall be unlawful for any clearing agency, unless registered in accordance with this subsection, directly or indirectly, to make use of the mails or any means or instrumentality of interstate commerce to perform the functions of a clearing agency with respect to any security.”

HQLAx and Clearstream International represented in their request to the SEC that there have been no U.S. participants on their platform to date, but they requested that up to fifteen U.S. persons be allowed to become U.S. participants on their platform. The request from HQLAx and Clearstream International explains that the U.S. participants will be required to be a: Broker-dealer that is registered with the Commission and has $100 million or more in excess net capital; or sa “Bank” as that term is defined under the Exchange Act and have total assets of $10 billion or more. The request also addresses eligible securities; volume limits; monitoring of U.S. participant criteria and volume limits; and reporting to SEC staff.

HQLAx and Clearstream International requested that the SEC take a no-action position for thirty-six months while they seek a permanent, conditional exemption from registration as a clearing agency under the Exchange Act.

The SEC determined that, based on the facts and circumstances outlined in the request, that staff would not recommend enforcement action to the Commission against HQLAx or Clearstream International under Section 17A(b)(1) in relation to HQLAx and Clearstream International’s operation of their platform with U.S. participants.

The SEC response cautions that the no-action position is subject to modification or revocation by SEC staff at any time.

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