Key takeaways
-
After paying a $45 million settlement in 2023 and exiting the market, Nexo re-entered the United States with a revamped product model focused on regulatory alignment rather than direct issuance of yields.
-
The 2023 crackdown focused on issues related to unregistered titles. The SEC alleged that Nexo’s Earn Interest product operated as an unregistered security, raising questions about retail yield marketing, transparency, custody practices and counterparty risk.
-
The new model relies on approved American partners. Instead of directly offering yield products, Nexo now operates through regulated U.S. intermediaries, including licensed entities and, where applicable, SEC-registered investment advisors.
-
The Bakkt partnership anchors the compliance strategy. By collaborating with Bakkt, a publicly traded and regulatory licensed US crypto company, Nexo is moving from a direct issuer model to a partner-provided framework integrated into regulated infrastructure.
Three years after leaving the United States and paying a $45 million settlement to federal and state regulators, Nexo has officially re-entered the American market. But this is not a simple relaunch. Rather, it is a structural overhaul.
What has changed is not just the political moment or climate; it is how the product is designed, delivered and regulated.
This article examines why Nexo exited in 2023, what regulators objected to, and how its 2026 return is structured differently. It also explores what US users should look out for before engaging in cryptocurrency-backed loans or yield-type products.
The crackdown of 2023: why Nexo left the United States
Nexo, co-founded by former Bulgarian lawmaker Antoni Trenchev, grew much of its initial footprint in the United States through its Earn Interest (EIP) product, which allows users to deposit cryptocurrencies and earn income.
In January 2023, the United States Securities and Exchange Commission (SEC) charged Nexo with offering and selling unregistered securities through this product. The SEC argued that the EIP met the legal definition of a security and therefore required proper registration.
Nexo agreed to a settlement:
-
It has paid a total of $45 million in fines to the SEC and various state regulators.
-
He neither admitted nor denied the allegations.
-
It stopped offering this product to American investors.
Shortly after, Nexo withdrew from the US retail market.
Why regulators targeted “winning” products
The enforcement action stems from the broader fallout from crypto lending after 2022. Major failures in the credit sector have exposed liquidity asymmetries, remortgaging risks and exposure of individuals to opaque yield structures.
Regulators were particularly concerned about:
-
Promoting yield products to individual investors
-
Transparency on how feedback was generated
-
Custody practices and counterparty credit risks
-
If these offers functioned as investment contracts.
The crackdown extended beyond Nexo and signaled a broader regulatory overhaul for centralized crypto yield offerings.
Did you know? Borrowing against volatile assets is not a new concept. Traditional stock margin lending has been around for decades, but the 24/7 trading of cryptocurrencies makes liquidation mechanisms much more dynamic and automated.
What changed in 2026
Nexo’s return in 2026 is based on a fundamental assertion: the product is now structured differently and delivered through approved US partners.
Instead of directly offering yield-type products to U.S. investors using its old approach, Nexo says its updated structure:
-
Relies on duly approved American partners
-
Incorporates an SEC-registered investment advisor when necessary
-
Phased out the product covered in the 2023 order.
This difference is significant: rather than operating as an independent compensation program provider, Nexo is now positioned within a regulated infrastructure framework.
According to Nexo, it will offer cryptocurrency-backed loans and yield-generating products. These services will be provided through authorized US partners.
Cryptocurrency-backed loans differ from unsecured lending models that failed in 2022. Users post digital assets as collateral and borrow against them. Liquidation occurs if the collateral falls below set loan-to-value thresholds.
The Bakkt partnership: compliance by design
A key factor in the revival is Nexo’s collaboration with Bakkt, an American publicly traded crypto company.
Bakkt provides regulated trading infrastructure and holds several US licenses. By channeling its U.S. operations through regulated entities, Nexo is effectively moving from a direct issuer model to one provided by partners.
Concretely, this means:
-
Trading, custody or advisory services could reside with regulated entities.
-
Product elements may be distributed among approved intermediaries.
-
Supervision can be carried out across several regulatory levels.
This framework is designed to address the regulatory objections that led to the 2023 regulations.
Did you know? Unlike banks, most crypto lending platforms do not benefit from federal deposit insurance, meaning customer protection relies heavily on custody structures and legal agreements rather than government safety nets.
An evolving regulatory landscape
Timing is a factor in Nexo’s return to the United States. Under President Donald Trump’s administration, the SEC has ended or reduced several crypto enforcement actions. The law enforcement environment has shifted from intense repression to a period of readjustment.
For example, the SEC decided to drop a lawsuit involving the Gemini Earn program following investor recovery. This does not indicate that crypto lending issues are entirely resolved, but it does indicate a more adaptable regulatory stance than in early 2023.
However, the American regulatory framework remains fragmented. Federal agencies, state securities regulators, money transmitter laws, and consumer lending rules may all apply depending on the structure.
What US users should watch
Even if products are offered by regulated intermediaries, users should evaluate:
-
Who is your legal counterparty? Is the agreement with Nexo, with a US-licensed entity, or with multiple entities?
-
Where is police custody located? Are the assets held by a qualified custodian? Under what regulatory regime?
-
How are returns generated? Do returns come from lending, staking, market making, or other activities?
-
What are the terms of liquidation of loans backed by cryptocurrencies?
What is the loan-to-value (LTV) threshold?
How quickly can liquidation take place?
Any extra fee ?
-
What disclosures exist? To research:
Risk Disclosures
Remortgage clauses
Conflict of interest declarations
Jurisdiction clauses.
“Compliant structure” does not equate to “risk-free product”.
Did you know? money transmitter license in the United States is state-based, meaning a crypto company may need approvals in dozens of jurisdictions. This is one reason why partner-led models are growing in popularity.
Why this feedback is important for the industry
Nexo’s return could indicate a broader transformation of crypto lending in the United States:
-
Phase 1 (before 2023): Direct-to-consumer performance models with minimal registration
-
Phase 2 (2023-2025): Regulatory enforcement, withdrawals and reorganization
-
Phase 3 (from 2026): Partner-led models employing approved intermediaries and separate functions.
If this framework proves viable, other international crypto companies could re-enter the United States via comparable levels of compliance instead of direct issuance models.
The real change: It’s about the packaging, not just the product
The main takeaway from Nexo’s return is structural.
The fundamental economic idea of generating yield on digital assets or borrowing against cryptocurrencies remains intact. What has evolved is the regulatory framework that surrounds it.
Rather than pushing the boundaries of securities law, the updated model fits within the licensed infrastructure.
The long-term satisfaction of this method by regulators will depend on the following elements:
-
Quality of disclosure
-
Risk management practices
-
Transparency of revenue sources
-
Ongoing coordination at the federal and state level.
For now, Nexo’s comeback reflects a more cautious crypto industry that recognizes that in the United States, structure dictates survival.
Cointelegraph maintains complete editorial independence. The selection, ordering and publication of Reports and Magazine content is not influenced by advertisers, partners or commercial relationships.
