Key conclusions

• After paying a $45 million settlement in 2023 and exiting the market, Nexo has re-entered the U.S. market with a redesigned product model focused on regulatory compliance rather than direct earnings issuance.

• The 2023 crackdown focused on issues related to unregistered securities. The SEC found that Nexo’s interest-generating product operated as an unregistered security, raising questions about retail profit marketing, transparency, custody practices and counterparty risk.

• The modern model is based on licensed partners from the USA. Rather than offering income products directly, Nexo now operates through regulated U.S. intermediaries, including licensed entities and, where necessary, SEC-registered investment advisors.

• The Bakkt partnership forms the basis of your compliance strategy. Working with Bakkt, a US-based, publicly traded and regulatory-licensed crypto company, Nexo is transitioning from a direct issuer model to a partner-delivered platform embedded in regulated infrastructure.

Three years after leaving the United States and paying a $45 million settlement to federal and state regulators, Nexo formally re-entered the US market. However, this is not a uncomplicated restart. Rather, it is a structural change.

Not only have times and the political climate changed; this is how the product is designed, delivered and regulated.

This article examines why Nexo exited in 2023, what regulators objected to, and how the refund structure looks different in 2026. It also examines what U.S. users should look at before using cryptocurrency-backed loans or yield products.

Repression in 2023: why Nexo left the US

Nexo, co-founded by former Bulgarian lawmaker Anton Trenchev, expanded much of its initial U.S. footprint with its Earn Interest Product (EIP), which allowed users to deposit cryptocurrencies and earn earnings.

In January 2023, the US Securities and Exchange Commission (SEC) accused Nexo of victim and the sale of unregistered securities through this product. The SEC concluded that the EIP meets the legal definition of a security and therefore requires proper registration.

Nexo agreed to a settlement:

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

• She neither admitted nor denied the allegations.

• It stopped offering the product to US investors.

Shortly thereafter, Nexo withdrew from the US retail market.

Why regulators have focused on ‘earning’ products.

The enforcement actions stemmed from the broader impact of crypto lending beyond 2022. Major failures in the lending industry exposed liquidity mismatches, remortgaging risks and retail exposure to unclear yield structures.

Regulators were particularly concerned:

• Promotion of profitable products among retail investors

• Transparency about how returns are generated

• Fiduciary practices and credit counterparty risk

• Whether these offers functioned as investment contracts.

The crackdown extended beyond Nexo and signaled broader regulatory changes surrounding centralized cryptocurrency profit offerings.

Did you know? Borrowing against variable assets is not a modern concept. Time-honored equity margin lending has been around for decades, but 24/7 cryptocurrency trading makes the liquidation mechanics much more active and automated.

What has changed in 2026

The return of Nexo in 2026 is based on a fundamental claim: the product is now structured differently and is delivered by licensed partners in the US.

Rather than directly providing US investors with products with a similar rate of return under its previous approach, Nexo states that its updated structure:

• It relies on properly licensed US partners

• If necessary, employs an SEC-registered investment advisor

• Withdrawn a product affected by the 2023 Regulation.

This difference is significant: instead of operating as an independent monetization provider, Nexo now resides within a regulated infrastructure framework.

According to Nexo, yes offer cryptocurrency-backed loans and income-generating products. These services will be provided through licensed partners in the US.

Crypto-collateralized lending is different 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 established loan-to-value thresholds.

Bakkt Partnership: Compliance from the very beginning

A key factor in the relaunch is Nexo’s partnership with Bakkt, an American-listed crypto company.

Bakkt provides regulated trading infrastructure and has multiple licenses in the US. By directing its U.S. operations through regulated entities, Nexo effectively transitions from a direct issuer model to a partner-delivered model.

In practice this means:

• Trading, custody or advisory services may be provided by regulated entities.

• Product components may be distributed through licensed intermediaries.

• Oversight may involve multiple regulatory levels.

This framework aims to address the concerns of regulators that led to the 2023 agreement.

Did you know? Unlike banks, most cryptocurrency lending platforms do not operate federal deposit insurance, which means customer protection depends largely on trust structures and legal agreements rather than government safeguards.

A changing regulatory landscape

Time is of the essence for Nexo’s return to the US. Under President Donald Trump, the SEC has ended or scaled back many of its crypto enforcement activities. The law enforcement environment has moved from intense suppression to a period of readjustment.

For example, the SEC decided to drop the Gemini Earn lawsuit for investor recovery. This does not mean that the problems with cryptocurrency lending have been completely resolved, but it does indicate a more malleable regulatory stance than in early 2023.

Nevertheless, the US regulatory framework remains fragmented. Depending on the structure, federal agencies, state securities regulators, money transmitter statutes, and consumer credit rules may apply.

What US users should watch

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

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

2. Where is the care located? Are the assets held by a qualified custodian? Under what regulatory regime?

3. How are returns generated? Do profits come from lending, betting, market making, or other activities?

4. What are the conditions for liquidating loans secured by cryptocurrencies?

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

   How quickly can liquidation take place?

   Are there additional fees?

5. What disclosures exist? To look for:

   Risk Disclosures

   Rehypothetical clauses

   Conflict of Interest Statements

   Jurisdiction clauses.

“Compliant design” does not mean “risk-free product.”

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

Why this comeback is so crucial for the industry

The return of Nexo may indicate a broader transformation in cryptocurrency lending in the US:

• Phase 1 (before 2023): Direct-to-consumer profit models with minimal registration

• Phase 2 (2023-2025): Enforcement, recall and reorganization

• Phase 3 (from 2026): Partner-led models using licensed intermediaries and dedicated functions.

If this framework proves viable, other international crypto companies could re-enter the U.S. through comparable levels of compliance rather than direct issuance models.

Real change: it’s about the packaging, not just the product

The main takeaway from Nexo’s comeback is structural.

The basic economic idea of ​​generating profit from digital assets or lending cryptocurrencies remains intact. The regulatory framework surrounding it has evolved.

Rather than pushing the boundaries of securities law, the updated model integrates with licensed infrastructure.

Whether this method satisfies regulators in the long term will depend on:

• Quality of disclosure

• Risk management practices

• Transparency of revenue sources

• Ongoing coordination at the federal and state levels.

For now, Nexo’s return reflects a more compliance-oriented approach to operating in the US regulatory environment.