"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, raising broader questions about how retail-focused yield products should be regulated, what disclosure obligations apply, and what custody and counterparty risk protections are required."
"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."
"Instead of directly offering yield products, Nexo now operates through regulated US intermediaries, including licensed entities and, where required, SEC-registered investment advisers. 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."
Nexo, a crypto lending platform, exited the US market in 2023 after the SEC alleged its Earn Interest Product functioned as an unregistered security. The regulatory crackdown raised concerns about retail yield marketing, transparency, custody practices, and counterparty risk. After paying a $45 million settlement, Nexo has reentered the US with a fundamentally different operational structure. Rather than directly issuing yield products, the platform now operates through licensed US intermediaries and regulated partners. The new model relies on collaboration with Bakkt, a publicly traded crypto firm with regulatory licenses, shifting from a direct issuer framework to a partner-delivered model embedded within regulated infrastructure. This structural overhaul represents a strategic pivot toward regulatory alignment.
Read at Cointelegraph
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