March 15 2026
Three years after leaving the US market and paying a $45 million settlement, Nexo has announced its return to the United States. This re-entry is not a simple relaunch, but a major restructuring of its business model, focusing on regulatory compliance rather than direct revenue distributions.
The changes aren't just a result of timing or political developments, but primarily of the way the product is designed, delivered, and regulated. This article highlights why Nexo left in 2023, the objections from regulators, and how its return in 2026 has been radically reshaped. We also discuss what US users should be aware of before engaging in crypto-backed lending or yield production.
Nexo, co-founded by former Bulgarian legislator Antoni Trenchev, built its initial presence in the US primarily through its Earn Interest Product (EIP). This service allowed users to deposit crypto and earn interest.
In January 2023, the US Securities and Exchange Commission (SEC) accused Nexo of offering unregistered securities through this product, arguing that EIP met the legal definition of a security. As a result, Nexo was required to properly register the products. The company agreed to a settlement: it paid $45 million in fines to the SEC and various state regulators, without admitting or denying the allegations, and stopped offering the product to US investors. Shortly thereafter, Nexo withdrew completely from the US retail market.
The enforcement was a response to the broader fallout from failures within the crypto lending sector after 2022. Significant failures revealed problems with liquidity, rehypothecation risks, and the opaque structures of retail returns. Regulators were particularly concerned about the promotion of such products to retail investors, the transparency of returns, the safety of the assets, and the risks associated with the counterparties.
The SEC's approach wasn't unilaterally aimed at Nexo, but signaled a broader regulatory new direction for centralized crypto yield quotes.
Nexo's approach in 2026 hinges on the crucial assertion that the product is now structured differently and offered through licensed partners in the US. Instead of offering yield products directly to US investors, Nexo is emphasizing a new structure that relies on approved partners in the US and, where necessary, registered investment advisors.
This is a significant shift; instead of acting as an independent provider of a profit-generating program, Nexo is now positioning itself within a regulated infrastructure framework. The company states that it offers crypto-based loans and yield-generating products, configured through licensed partners.
Crypto-based lending differs from the unsecured models that failed in 2022. Users can pledge their digital assets as collateral and borrow against them, with liquidation occurring if the collateral falls below predetermined loan-to-value (LTV) thresholds.
A key aspect of Nexo's relaunch is its partnership with Bakkt, a publicly traded crypto company in the US that holds multiple licenses. By channeling its US operations through regulated entities, Nexo is shifting from a direct-to-consumer model to a partner-provided model.
This means that services such as trading, custody, or advisory services can be performed by regulated entities. This structure can help address the well-known regulatory concerns that led to the 2023 settlement.
The timing of Nexo's return to the US is not without its influence. Under President Trump's administration, the SEC has either terminated or weakened various crypto enforcement measures. The enforcement environment has shifted from a heavy crackdown to a period of review.
However, the US regulatory framework remains fragmented, and multiple federal and state laws may apply depending on the structure of the offerings.
Even when products are offered through regulated intermediaries, users should ask the following questions:
– Who is your legal counterparty? Do you have an agreement with Nexo, a US-licensed entity, or multiple entities?
Where is the custody located? Are assets held in a qualified custody facility? What regulations apply to this?
How are the returns generated? Are these returns the result of lending, staking, market-making, or other activities?
What are the liquidation periods for crypto-based loans? What is the LTV threshold? How quickly can liquidation occur? Are there any additional fees?
What disclosures are there? Look for risk information, rehypothecation terms, conflict of interest statements, and jurisdictional terms.
It is crucial to recognize that a “compliant structure” is not the same as a “risk-free product.”
Nexo's return could signal a broader shift in the US crypto lending world. The shift can be divided into three phases:
1. Phase 1 (Pre-2023): Direct-to-consumer models with minimal registration.
2. Phase 2 (2023-2025): Enforcement of regulations, withdrawals and reorganizations.
3. Phase 3 (2026 onwards): Partner-led models using accredited intermediaries and segregated functions.
Should this new framework prove viable, international crypto companies may also be poised to re-enter the US market through similar compliant layers.
The key lesson from Nexo's return revolves around structure. The fundamental economic principles of generating returns on digital assets or lending against crypto remain, but there is an evolutionary development in the regulatory framework.
Rather than pushing the boundaries of securities laws, the revamped model integrates into an approved infrastructure framework. Whether this new model meets regulators' long-term requirements will depend on the quality of disclosures, risk management, transparency of revenue sources, and continued coordination between federal and state agencies. For now, Nexo's re-entry reflects a more cautious crypto landscape that recognizes that in the US, structure is crucial for survival.
Why did Nexo leave the US market?
Nexo exited the US market in 2023 amid SEC allegations that its Earn Interest Product offered unregistered securities, leading to a $45 million settlement.
What's different about Nexo's products in 2026?
In 2026, Nexo operates through licensed partners in the US and has adjusted its product structure to comply with regulations, eliminating direct delivery of yield products.
Why is the collaboration with Bakkt important?
The partnership with Bakkt is essential because it allows Nexo to integrate its US operations within a regulated infrastructure framework, helping to meet regulatory requirements and mitigate risks.
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