Basic considerations
-
After paying $45 million in 2023 and exiting the market, Nexo entered the U.S. with a redesigned model focused on regulatory alignment rather than direct output.
-
The 2023 fight focused on unregistered securities concerns. The SEC alleged that the Nexo Earn Interest product acted as an unregistered security, raising questions about retail income marketing, transparency, custody practices and counterparty risk.
-
The new model relies on US license partners. Instead of offering derivative products directly, Nexo now operates through US regulated intermediaries, including licensed firms and, where applicable, SEC-registered investment advisers.
-
Bakkt partnership anchors compliance strategy. By partnering with Bakkt, a US crypto company with regulatory licenses, Nexo is transitioning from a direct issuer model to a partner-delivered framework embedded within a regulated infrastructure.
After three years of leaving the US and paying $45 million to federal and state regulators, Nexo has officially re-entered the US market. But it’s not a direct reboot. Rather, it is a structural adjustment.
What has changed is not just the time or the political climate; How the product is designed, delivered and configured.
This article explores why Nexo exited in 2023, what regulators objected to, and how its return in 2026 is structured differently. It also explores what US users should look for before dealing with crypto-backed loans or income-style products.
Repression of 2023: Why Nexo left the US
Nexo, founded by former Bulgarian lawmaker Antoni Trenchev, generated much of the initial US surplus through Interest-Based Products (EIP), which allowed users to deposit crypto and earn income.
In January 2023, the US Securities and Exchange Commission (SEC) accused Nexo of offering and selling unregistered securities through this product. The SEC argued that an EIP meets the statutory definition of a security and therefore requires proper registration.
Nexo agreed to the deal:
-
It paid a total of $45 million in fines to the SEC and various state regulators.
-
He neither admitted nor denied these accusations.
-
It stopped offering products to American investors.
Soon after, Nexo withdrew from the US retail market.
Why Regulators “Get” Products
The enforcement action stems from a broader reduction in crypto lending after 2022. Major failures in the lending industry have revealed liquidity inconsistencies, re-hypothecation risks and retail exposure to opaque income structures.
Regulators were particularly concerned about:
-
Promotion of yield products to retail investors
-
Transparency on how revenues are generated
-
Custody practices and credit counterparty risks
-
Whether or not these offers functioned as investment contracts.
The fight extended beyond Nexo, hinting at a broader regulatory overhaul for centralized crypto revenue offerings.
You know that? Debt from non-performing assets is not a new concept. Traditional equity margin lending has been around for decades, but 24/7 crypto trading makes the liquidation mechanics much more dynamic and automated.
What has changed in 2026
The return of the Nexo 2026 rests on one main claim: The product is now made differently and supplied through licensed US partners.
Instead of offering yield-like products directly to U.S. investors under its previous approach, Nexo says its revamped structure:
-
Relies on eligible US licensed partners
-
An SEC-registered investment advisor is included when applicable
-
The product mentioned in the 2023 order has been phased out.
The difference is significant: Instead of operating as an independent revenue application provider, Nexo is now embedded within a configurable infrastructure framework.
According to Nexo, it offers cryptographically backed loans and yield products. These services are provided through licensed US partners.
Crypto-backed loans are different from the unsecured lending models that failed in 2022. Users pledge and borrow digital assets as collateral. Liquidation takes place if the collateral falls below the established credit limit in value.
Bakkt Partnership: Compatibility by Design
A key factor in the relaunch is Nexo’s partnership with Bakkt, a publicly traded US cryptocurrency company.
Bakkt provides a regulated trading infrastructure and holds multiple US licenses. By running US operations through regulated entities, Nexo is effectively transitioning from an issuer model to a partner-delivered model.
In practical terms, this means:
-
Trading, maintenance or consulting services may reside in regulated entities.
-
Product components may be distributed among licensed intermediaries.
-
Control can take place in a number of regulatory layers.
The framework was designed to address the regulatory objections that led to the 2023 settlement.
You know that? Unlike banks, most crypto lending platforms do not benefit from federal deposit insurance, meaning customer protection depends on custody structures and legal agreements rather than government backing.
A changing regulatory landscape
Time is a factor in Nexo’s return to the US. Under the administration of President Donald Trump, the SEC has halted or reduced a number of crypto usage practices. The performance environment has shifted from extreme stress to a period of correction.
For example, the SEC dropped its lawsuit against the Gemini Earn program after investors recovered. This does not indicate that crypto lending issues have been completely resolved, but it does point to a more adaptive regulatory position than early 2023.
However, the US regulatory framework remains fragmented. Federal agencies, state securities regulators, money transmission laws, and consumer lending regulations may apply depending on the structure.
What US users should watch
Even if the product is offered through regulated intermediaries, users must evaluate:
-
Who is your legal partner? Is the agreement concluded with Nexo, with one US licensing agency, or with multiple agencies?
-
Where is the storage located? Are the assets in the custody of a qualified custodian? In which mode of adjustment?
-
How are returns generated? Does the income come from lending, equity, marketing or other activities?
-
What are the terms of liquidation of cryptographic debts?
What is the loan to value (LTV) limit?
How fast can liquidation happen?
Is there an additional charge?
-
What disclosures are there? Search for:
Risk disclosure
Repetitive Terms
Conflict of Interest Statement
Terms of Jurisdiction.
“Suitable structure” does not equal “risk-free product”.
You know that? Money transfer licensing is a state in the US, which means that a crypto company may need approval in dozens of jurisdictions. This is one reason why affiliate models are gaining popularity.
Why this return is important for the industry
Nexo’s return could signal a broader shift in US crypto lending:
-
Phase 1 (before 2023): Direct-to-consumer harvest models with minimal registration
-
Phase 2 (2023-2025): Provision of adjustment, withdrawal and reorganization
-
Phase 3 (after 2026): Partner-led models use licensed intermediaries and segregated functions.
If this framework is viable, other international crypto companies may enter the US through appropriate compliance layers instead of direct issuance models.
Real change: It’s about the packaging, not just the product
The initial review of the Nexo back is structured.
The fundamental economic idea of ​​generating income from digital assets or borrowing from crypto remains unchanged. What has evolved is the regulatory framework around it.
Rather than pushing the limits of securities law, the updated model integrates into licensed infrastructure.
Whether this approach will satisfy regulators in the long run depends on:
-
Disclosure quality
-
Risk management practices
-
Transparency of sources of income
-
Ongoing federal and state coordination.
At the same time, Nexo’s return reflects a smart crypto industry that recognizes that in the US, structure dictates survival.
Cointelegraph maintains full editorial independence. The selection, commissioning and publication of the content and content of the magazine is not influenced by advertisers, partners or commercial relationships.
