Nexo Returns to US Market After Three-Year Absence
The crypto platform withdrew from American operations in 2022, pointing to an unfriendly regulatory environment created by state and federal financial authorities.
The digital asset platform Nexo is preparing to resume operations in the United States on Monday, marking its return to the American market more than three years following its departure amid conflicts with regulatory authorities at both the federal and state levels.
The company now points to enhanced regulatory clarity surrounding digital assets in the United States as the reason for its comeback. According to Eleonor Genova, Nexo's head of communications speaking with Cointelegraph, the relaunched platform will provide US customers access to flexible and fixed-term yield programs, a spot cryptocurrency exchange, credit lines backed by crypto assets, and a loyalty rewards program.
Bakkt, a digital asset platform based in the United States that specializes in serving institutional clients, will supply the trading infrastructure for Nexo's operations. Genova explained:
"Nexo's US offering is structured through partnerships with appropriately licensed US service providers. Certain services are made available via a third-party Securities and Exchange Commission-registered (SEC) investment adviser, which provides advisory services under applicable US securities laws."
The company announced that its renewed American operations will be headquartered in Florida and managed by a leadership team that will be revealed in the near future.
The company initially revealed its intentions to reenter the United States market during an exclusive April 2025 event that featured Donald Trump Jr., son of President Donald Trump, as the headline speaker. During his appearance, Trump Jr. characterized cryptocurrency as representing the future direction of the financial sector.
2022 exit cited regulatory uncertainty under Gensler regime
The platform withdrew from the United States in December 2022 during the peak of the cryptocurrency bear market, pointing to what it characterized as a hostile regulatory environment toward the crypto sector under former SEC chair Gary Gensler's administration.
At the time, the company explained that its decision to leave the US market came out of necessity following 18 months of what it described as "good faith" negotiations with regulatory authorities at both the state and federal levels that failed to produce meaningful progress.
"It is now unfortunately clear to us that despite rhetoric to the contrary, the US refuses to provide a path forward for enabling blockchain businesses," the company stated at that time.
The platform's "Crypto Earn" program, which enabled users to generate compounding interest on selected cryptocurrencies that they loaned to the platform, became a significant source of dispute between the SEC and Nexo.
In January 2023, the company reached a $45 million settlement agreement with the SEC regarding its failure to register the interest-bearing crypto rewards program with the regulatory body. Additionally, Nexo settled a separate $22.5 million multi-state securities enforcement action connected to the same earn interest program.
Just one month following these settlements, the company discontinued its Crypto Earn program for all US-based users.
Washington mulls crypto "clarity"
The company's return to the American market coincides with ongoing efforts in the nation's capital to enact legislation that would establish clear guidelines for how US regulatory bodies will oversee the cryptocurrency sector. A comparable piece of legislation, known as the CLARITY Act, received approval from the House in July, though progress has since halted as the Senate Banking Committee continues working to secure sufficient bipartisan backing to move it forward.
On Friday, White House crypto adviser Patrick Witt emphasized that both political parties need to find common ground on this matter and work toward passing legislation prior to the November midterm elections. Adding complexity to the gridlock are apprehensions raised by cryptocurrency industry leaders, which US Treasury Secretary Scott Bessent believes have had detrimental effects on the sector, as he stated to CNBC on Friday.
A meeting organized by the White House last week brought together representatives from both the cryptocurrency and traditional banking industries in an attempt to find consensus on stablecoin provisions within the broader market structure legislation. While the gathering was characterized as "productive," the issues at hand remain unresolved.