Nexo Reenters US Market with Regulatory-Compliant Structure

Nexo has made a significant return to the US market, three years after paying a $45-million settlement in response to a crackdown on unregistered securities. The company's new model marks a departure from its previous direct-to-consumer yield models, instead relying on licensed US partners and regulated infrastructure to offer crypto-backed loans and yield-generating products.

The 2023 crackdown centered on concerns that Nexo's Earn Interest Product functioned as an unregistered security, raising questions about retail yield marketing, transparency, custody practices, and counterparty risk. In response, Nexo ceased offering the product to US investors and withdrew from the market.

However, with its 2026 comeback, Nexo has implemented a new structure that addresses these regulatory concerns. By partnering with licensed US entities, including Bakkt, a publicly traded US crypto firm, Nexo is able to operate within regulated infrastructure. This shift is aimed at providing a compliant framework for its products and services.

While the fundamental economic idea of generating yield on digital assets or borrowing against crypto remains intact, the regulatory landscape surrounding it has evolved. The updated model integrates licensed intermediaries and segregated functions, which may provide a viable path for other international crypto companies to reenter the US market through comparable compliance layers instead of direct issuance models.