Nexo has announced a planned re-entry into the U.S. market, two years after settling with regulators over unregistered securities offerings.
The company unveiled its return plans at a business event featuring Donald Trump Jr., Executive Vice President of The Trump Organization, and Gila Gamliel, Israel’s Minister of Innovation, Science, and Technology.
In January 2023, Nexo agreed to pay a total of $45 million in penalties—$22.5 million to the U.S. Securities and Exchange Commission (SEC) and $22.5 million to state regulators—for failing to register its Earn Interest Product (EIP), which allowed U.S. investors to earn interest on crypto deposits.
Under the Biden administration, US regulators were aggressive in their actions against platforms operating ‘earn’ products, with Nexo just one of many providers heavily penalized at the time.
In Nexo’s case, the SEC deemed its Earn product a security, requiring proper registration. The move saw Nexo cease offering the EIP to new U.S. investors and also stop paying interest on new funds added to existing accounts.
Following the settlement, Nexo phased out its U.S. operations but now plans a return amid a shifting regulatory landscape. Co-founder Antoni Trenchev stated that the company is engaging in “constructive” discussions with regulators, including the SEC, to ensure compliance. Trenchev has previously expressed his belief that the Trump administration has nothing but good things in store for the crypto sector.
Indeed, Nexo’s re-entry comes as the U.S. government signals a more favorable stance toward cryptocurrency innovation and the SEC continues its series of round table meetings with major crypto players. Donald Trump Jr. emphasized the importance of a supportive regulatory environment to maintain America’s technological leadership.
With $11 billion in assets under management, Nexo aims to offer its suite of digital asset products—including high-yield crypto savings accounts, asset-backed credit lines, and advanced trading—to U.S. clients. However, Nexo’s highest rates have always been for stablecoin deposits, which will clash directly with the Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025 (the STABLE Act), currently in Congress, which seeks to ban yield.
Section 4, part 8 of the Bill is unambiguous on the matter, stating “PROHIBITION ON YIELD.—A permitted payment stablecoin issuer may not pay interest or yield to holders of its payment stablecoins.”
Nonetheless, Nexo asserts that it has addressed past regulatory issues and is committed to operating within the legal framework.
As Nexo re-establishes its presence in the U.S., the company faces the challenge of rebuilding trust and demonstrating adherence to continued opaque regulatory standards as it and other major players wait for legislative clarity from US law makers.
