Nexo is making a significant return to the United States after a hiatus of more than three years, during which it paused operations due to regulatory challenges. The platform plans to offer a suite of services, including yield programs, a spot exchange, and crypto-backed credit lines for users in the US.
This relaunch is bolstered by a partnership with Bakkt, a prominent US digital asset platform known primarily for catering to institutional clients. Bakkt will provide the necessary trading infrastructure to facilitate Nexo”s new offerings. Eleonor Genova, Nexo”s head of communications, has confirmed that the platform will include both flexible and fixed-term yield programs tailored for US customers.
Additionally, Nexo aims to introduce crypto-backed credit lines and a loyalty program to enhance user engagement. The management of this new venture will be based in Florida, with further details regarding the management team set to be disclosed soon. Genova emphasized that all services will be conducted in collaboration with licensed US providers, ensuring compliance with local regulations.
Nexo”s decision to reenter the US market is influenced by what it perceives as improved regulatory clarity for digital assets. The company had initially exited the market in late 2022, citing an unwelcoming regulatory environment, particularly under former SEC Chair Gary Gensler. A pivotal factor in Nexo”s withdrawal was the scrutiny surrounding its “Crypto Earn” program, which allowed users to earn interest on their crypto holdings.
In 2023, Nexo reached a settlement with the SEC, agreeing to pay $45 million for failing to register its interest-bearing program, which ultimately led to the cessation of its US operations. Despite these past challenges, the company is optimistic about the current regulatory landscape, believing it has become more favorable for blockchain enterprises.
The timing of Nexo”s relaunch coincides with ongoing efforts in the US to establish clearer regulations for cryptocurrencies. Recently, the House passed the CLARITY Act, although progress in the Senate remains uncertain. Patrick Witt, a crypto advisor at the White House, has urged for bipartisan compromises to advance crypto legislation ahead of the 2024 elections.
Nexo”s revitalized platform is designed to align with US securities laws, providing a compliant and stable environment for crypto users as regulatory discussions continue. The exchange will leverage third-party advisory services that are registered with the SEC, reinforcing its commitment to adhere to applicable securities laws as it seeks to regain trust in the US market.
