Nexo is making a significant comeback in the United States, officially relaunching its crypto lending and exchange services after having exited the market in 2022. This strategic move comes as a response to enhanced regulatory clarity and a shift towards a more crypto-friendly environment under the new leadership of the SEC.
The relaunch will be executed through partnerships with licensed U.S. providers, incorporating trading infrastructure powered by Bakkt, a platform recognized for its institutional-grade compliance and risk management capabilities. Nexo”s revised operational model is designed to align with domestic securities regulations, marking a pivotal shift from its previous challenges in the U.S. market.
Nexo”s departure from the U.S. in late 2022 was largely due to stringent regulatory challenges and enforcement pressures from the prior SEC administration. The company was later involved in a $45 million settlement with the SEC, alongside a $22.5 million agreement with multiple states concerning allegations related to certain interest-bearing products being classified as unregistered securities. Notably, these settlements were reached without any admission of wrongdoing.
New Services and Compliance Measures
As part of its relaunch, Nexo is introducing a suite of services that comply with current regulations, including:
- Flexible and fixed-term yield programs
- Spot cryptocurrency exchange functionality
- Crypto-backed credit lines
- Loyalty and rewards programs
- Fiat on- and off-ramps via ACH and wire transfers
However, the original Crypto Earn product will not be reinstated for U.S. users at this time, following the regulatory settlements.
Adapting to a Changing Regulatory Landscape
Nexo”s return reflects a broader trend among crypto firms re-evaluating their presence in the U.S. market after years of regulatory scrutiny. Several companies that had previously scaled back operations are now exploring new opportunities as the regulatory landscape evolves.
The current SEC administration, led by Chair Paul Atkins, has signaled a more constructive approach towards compliance pathways for digital asset platforms. Although comprehensive federal legislation like the proposed CLARITY Act remains a topic of discussion, incremental regulatory adjustments have opened avenues for compliant business models.
Nexo”s reentry into the U.S. market introduces a regulated crypto lending and yield platform at a time when the sector is still recovering from the collapse of major players such as BlockFi and Celsius. For both retail and institutional participants, access to compliant crypto-backed credit lines and yield products could foster renewed confidence in the market.
The company is also establishing a U.S. base in Florida, with plans to announce a dedicated management team in the upcoming months. Nexo”s strategy emphasizes risk management and structural alignment with U.S. standards, positioning itself within the evolving regulatory framework.
Ultimately, Nexo”s relaunch serves as a test case for how international crypto platforms can navigate and succeed in the U.S. market amidst tightened compliance standards.
