Key takeaways

• After paying a $45-million settlement in 2023 and exiting the market, Nexo has reentered the US with a redesigned product model focused on regulatory alignment rather than direct yield issuance.

• The 2023 crackdown centered on unregistered securities concerns. The SEC alleged that Nexo’s Earn Interest Product functioned as an unregistered security, raising questions about retail yield marketing, transparency, custody practices and counterparty risk.

• The new model relies on licensed US partners. Instead of directly offering yield products, Nexo now operates through regulated US intermediaries, including licensed entities and, where required, SEC-registered investment advisers.

• The Bakkt partnership anchors the compliance strategy. By collaborating with Bakkt, a publicly traded US crypto firm with regulatory licenses, Nexo shifts from a direct issuer model to a partner-delivered framework embedded within regulated infrastructure.

Three years after departing the US and paying a $45-million settlement to federal and state regulators, Nexo has formally reentered the US market. But this is not a straightforward relaunch. Rather, it is a structural overhaul.

What changed is not merely the timing or the political climate; it is how the product is designed, delivered and regulated.

This article examines why Nexo exited in 2023, what regulators objected to and how its 2026 return is structured differently. It also explores what US users should watch before engaging with crypto-backed loans or yield-style products.

The 2023 crackdown: Why Nexo left the US

Nexo, co-founded by former Bulgarian lawmaker Antoni Trenchev, developed much of its initial US footprint through its Earn Interest Product (EIP), which enabled users to deposit crypto and earn yield.

In January 2023, the US Securities and Exchange Commission (SEC) accused Nexo of offering and selling unregistered securities through this product. The SEC contended that the EIP met the legal definition of a security and, therefore, required proper registration.

Nexo consented to a settlement:

• It paid a total of $45 million in fines to the SEC and various state regulators.

• It neither admitted nor denied the allegations.

• It ceased offering the product to US investors.

Soon after, Nexo withdrew from the US retail market.

Why regulators targeted “earn” products

The enforcement action stemmed from a wider post-2022 crypto lending fallout. Major failures across the lending industry had revealed liquidity mismatches, rehypothecation risks and retail exposure to opaque yield structures.

Regulators were particularly concerned about:

• The promotion of yield products to retail investors

• Transparency regarding how returns were generated

• Custody practices and credit counterparty risks

• Whether these offerings functioned as investment contracts.

The crackdown extended beyond Nexo and signaled a broader regulatory overhaul for centralized crypto yield offerings.

Did you know? Borrowing against volatile assets is not a new concept. Traditional stock margin lending has existed for decades, but crypto’s 24/7 trading makes liquidation mechanics far more dynamic and automated.

What changed in 2026

Nexo’s 2026 comeback rests on a core claim: The product is now structured differently and provided through licensed US partners.

Instead of directly delivering yield-like products to US investors under its former approach, Nexo states that its updated structure:

• Relies on properly licensed US partners

• Incorporates an SEC-registered investment adviser when required

• Has phased out the product addressed in the 2023 order.

This difference is significant: Rather than operating as an independent provider of an earn program, Nexo is now positioned within a regulated infrastructure framework.

According to Nexo, it will offer crypto-backed loans and yield-generating products. These services will be provided through licensed US partners.

Crypto-backed loans differ from the unsecured lending models that failed in 2022. Users deposit digital assets as collateral and borrow against them. Liquidation occurs if the collateral falls below set loan-to-value thresholds.

The Bakkt partnership: Compliance by design

A key factor in the relaunch is Nexo’s collaboration with Bakkt, a publicly traded US crypto firm.

Bakkt provides regulated trading infrastructure and holds multiple US licenses. By channeling US operations through regulated entities, Nexo is effectively moving from a direct issuer model to a partner-delivered model.

In practical terms, this means:

• Trading, custody or advisory services could reside with regulated entities.

• Product elements may be distributed across licensed intermediaries.

• Supervision may occur across multiple regulatory layers.

This framework is designed to address the regulatory objections that led to the 2023 settlement.

Did you know? Unlike banks, most crypto lending platforms do not benefit from federal deposit insurance, meaning customer protections depend heavily on custody structures and legal agreements rather than government backstops.

A shifting regulatory landscape

Timing is a factor in Nexo’s return to the US. Under President Donald Trump’s administration, the SEC has terminated or scaled back multiple crypto enforcement actions. The enforcement environment has shifted from an intense crackdown to a period of readjustment.

For instance, the SEC moved to drop a lawsuit involving the Gemini Earn program following investor recoveries. This does not indicate that crypto lending issues are entirely resolved, but it points to a more adaptable regulatory stance than in early 2023.

Nevertheless, the US regulatory framework remains fragmented. Federal agencies, state securities regulators, money transmitter statutes and consumer lending rules may all apply depending on the structure.

What US users need to watch

Even if products are offered through regulated intermediaries, users should assess:

1. Who is your legal counterparty? Is the agreement with Nexo, with a US-licensed entity or with multiple entities?

2. Where does custody sit? Are assets held by a qualified custodian? Under which regulatory regime?

3. How are returns generated? Are yields derived from lending, staking, market-making or other activities?

4. What are the liquidation terms for crypto-backed loans?

   What is the loan-to-value (LTV) threshold?

   How quickly can liquidation occur?

   Are there additional fees?

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5. What disclosures exist? Look for:

   Risk disclosures

   Rehypothecation clauses

   Conflict-of-interest statements

   Jurisdiction clauses.

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“Compliant structure” does not equal “risk-free product.”

Did you know? Money transmitter licensing in the US is state-based, which means a crypto company may need approvals in dozens of jurisdictions. This is one reason partner-led models are gaining popularity.

Why this comeback matters for the industry

Nexo’s return could indicate a wider transformation in US crypto lending:

• Phase 1 (Pre-2023): Direct-to-consumer yield models with minimal registration

• Phase 2 (2023-2025): Regulatory enforcement, withdrawals and reorganization

• Phase 3 (2026 onward): Partner-led models employing licensed intermediaries and segregated functions.

If this framework proves viable, other international crypto companies may reenter the US through comparable compliance layers instead of direct issuance models.

The real shift: It is about the wrapper, not just the product

The primary takeaway from Nexo’s return is structural.

The fundamental economic idea of generating yield on digital assets or borrowing against crypto remains intact. What has evolved is the regulatory framework surrounding it.

Rather than pushing the limits of securities law, the updated model integrates into licensed infrastructure.

Whether this method satisfies regulators over the long term will hinge on:

• Disclosure quality

• Risk management practices

• Transparency of revenue sources

• Ongoing federal and state coordination.

For now, Nexo’s comeback reflects a more prudent crypto industry that recognizes that in the US, structure dictates survival.