Nexo makes a comeback in the United States market
In a significant change from the previous administration, the current U.S. regulatory framework for cryptocurrency under President Joe Biden's leadership is focusing on establishing comprehensive regulation and clearer legal structures for digital assets.
This evolution is a departure from the pro-crypto but less-regulated approach during President Donald Trump's tenure, which primarily introduced foundational legislation like the GENIUS Act for stablecoins.
Nexo, a crypto lending platform, announced its re-entry into the U.S. market on Monday after a two-year absence, following 18 months of discussions with regulators. The company agreed to pay $45 million to the Securities and Exchange Commission (SEC) in January 2023 to resolve allegations of selling unregistered securities through its Earn Interest Product.
The SEC, under the leadership of Chair Gary Gensler, has been actively charging crypto firms with regulatory violations, including days before Nexo's settlement was announced, when the SEC charged Gemini and Genesis with selling unregistered securities.
Regulators in eight states, including New York and California, had filed administrative actions against Nexo in September 2022. This crackdown on crypto firms reflects the Biden administration's focus on establishing a more structured policy coordination across agencies and broader financial oversight.
The SEC is hosting industry roundtables for the Crypto Task Force that Commissioner Hester Peirce is leading. Peirce, credited for her "principled and tireless advocacy for common-sense crypto policy within the United States," has been instrumental in these efforts.
Newly minted SEC Chair Paul Atkins, who previously served as an SEC commissioner from 2002 to 2008 and was co-chair of the Token Alliance, has credited Commissioner Peirce for her work on crypto regulation.
Meanwhile, Donald Trump Jr., who launched crypto company World Liberty Financial with his family during Trump Sr.'s presidential campaign, emphasized the importance of a regulatory framework for the success of crypto. He stated that his family sees the opportunity for the financial sector in crypto and wants to ensure it returns to the U.S.
The Biden administration's approach to crypto regulation is marked by a push for regulatory frameworks, a criticism of "regulation by enforcement," and a focus on legal clarity, consumer protection, and integration into traditional financial regulation. This is in stark contrast to Trump's era, which prioritized innovation and market positioning over formal rules.
References:
- White House, "Strengthening American Leadership in Digital Financial Technology," July 2025.
- U.S. Department of Labor, "Rescission of Interpretive Bulletin 2019-01 Regarding Virtual Currencies," January 2023.
- U.S. Congress, "The Keep Innovating Stablecoins Act (KISS Act)," 2022.
- U.S. Congress, "Digital Asset Market Clarity Act," 2021.
- U.S. Congress, "Anti-CBDC Surveillance State Act," 2020.
Under the Biden administration's leadership, a shift towards comprehensive regulation and clearer legal structures for digital assets, including cryptocurrency, is evident, as compared to the pro-crypto but less-regulated approach during President Donald Trump's tenure. To this end, the Securities and Exchange Commission (SEC), under the leadership of Chair Gary Gensler, has been actively charging crypto firms with regulatory violations, such as Nexo, and hosting industry roundtables for the Crypto Task Force. This regulatory focus on crypto firms is part of the Biden administration's push for regulatory frameworks, a criticism of "regulation by enforcement," and a focus on legal clarity, consumer protection, and integration into traditional financial regulation.
