Why Nexo Is Reentering the US After the 2023 Crypto Lending Crackdown
Nexo has returned to the US market with a redesigned product model focused on regulatory alignment through licensed partners.Summary
Nexo has reentered the US market following its 2023 exit, which involved paying a $45 million settlement to regulators over allegations that its Earn Interest Product (EIP) functioned as an unregistered security. The company's return is marked by a significant structural overhaul: instead of directly issuing yield products, Nexo now operates through licensed US partners, including SEC-registered investment advisers where necessary. A key element of this compliance strategy is the partnership with Bakkt, a publicly traded US crypto firm. This shift moves Nexo from a direct issuer model to a partner-delivered framework embedded within regulated infrastructure, aiming to satisfy the regulatory objections that led to the previous crackdown concerning transparency, custody, and counterparty risk. The article suggests this partner-led model might signal a broader transformation for US crypto lending, emphasizing that while the economic concept of generating yield remains, the regulatory 'wrapper' around the product is what dictates survival in the US.
(Source：Cointelegraph)