After a significant absence from the U.S. market, Nexo has made its return with a new compliance-focused approach. This re-entry comes three years following a $45 million settlement with regulators, which highlighted issues regarding unregistered securities linked to its Earn Interest Product (EIP).
Under heightened scrutiny from the U.S. Securities and Exchange Commission (SEC), Nexo has now shifted to a model that relies on partnerships with licensed U.S. firms and SEC-registered investment advisers. This change aims to ensure regulatory alignment while distancing itself from direct yield offerings.
The collaboration with Bakkt, a publicly traded crypto company with necessary regulatory licenses, serves as a cornerstone of this new strategy. Through this partnership, Nexo is positioned to deliver its services within a regulated framework, addressing previous concerns about transparency and custody practices.
This structural overhaul marks a notable shift in how Nexo plans to engage with U.S. users, emphasizing compliance and oversight as it navigates a challenging regulatory landscape. Users are advised to remain vigilant regarding the implications of this new model before participating in crypto-backed loans or yield products.