Nexo is back in the US: What changed after the 2023 crypto lending crackdown?

Nexo has officially reentered the United States market, marking a significant shift from its previous operations following a $45 million settlement with regulators in 2023. The company's return is characterized by a redesigned product model that prioritizes regulatory compliance and operates through licensed US partners, rather than directly offering yield-generating products.

The 2023 regulatory action by the SEC focused on Nexo's Earn Interest Product (EIP), which was alleged to function as an unregistered security. Concerns raised by regulators included the marketing of yield products to retail investors, transparency in yield generation, custody practices, and counterparty risk. Nexo subsequently ceased offering the EIP to US investors and withdrew from the US retail market.

The new operational framework for Nexo's return in 2026 is built upon collaboration with regulated US intermediaries. Instead of directly providing services, Nexo now operates through licensed entities and, where necessary, SEC-registered investment advisers. This approach aims to embed its services within existing regulated infrastructure.

A cornerstone of this compliance strategy is the partnership with Bakkt, a publicly traded US crypto firm holding multiple regulatory licenses. This collaboration facilitates Nexo's transition from a direct issuer to a partner-delivered model, where services like trading, custody, and advisory functions are handled by licensed entities, potentially distributed across various intermediaries under multiple regulatory layers.

Nexo states that its updated structure has phased out the product that was the subject of the 2023 settlement. The company plans to offer crypto-backed loans and yield-generating products, which will be provided through these licensed US partners. Crypto-backed loans involve users depositing digital assets as collateral to borrow against them, with liquidation mechanisms triggered if collateral value falls below predefined loan-to-value thresholds.

The timing of Nexo's return coincides with a perceived shift in the US regulatory environment, with some enforcement actions being scaled back or terminated. However, the regulatory landscape remains fragmented, with federal agencies, state securities regulators, and various licensing requirements potentially applying.

Users engaging with Nexo's services in the US are advised to carefully assess several factors, including the legal counterparty, custody arrangements, the source of generated yields, liquidation terms for loans, and the comprehensiveness of risk disclosures. The company emphasizes that a compliant structure does not equate to a risk-free product.

Nexo's reentry is viewed as a potential indicator of a broader industry transformation in crypto lending, moving from direct-to-consumer yield models to partner-led structures that integrate with licensed intermediaries. The long-term success of this model will depend on factors such as disclosure quality, risk management, transparency, and ongoing regulatory coordination.