Nexo is plotting its return to the U.S. market after clearing a $45 million fine. This announcement coincides with Donald Trump, Jr.’s appearance at a Nexo conference in Bulgaria, where the firm expressed intentions to work with regulators like the SEC. Despite changing views on crypto, experts caution that compliance remains crucial as the landscape evolves.
In an interesting turn of events, cryptocurrency company Nexo is making a comeback in the U.S. market after a two-year hiatus and a hefty $45 million fine. As reported by Reuters, Nexo revealed this news on April 28 during a conference held in Sofia, Bulgaria, where none other than Donald Trump, Jr. was the headline speaker. The event, called “Trump Business Vision 2025,” served as a platform for Nexo’s aspirations for re-entry into the American crypto landscape.
Nexo’s Co-founder, Antoni Trenchev, mentioned to Reuters that they are aiming to resume operations in the U.S. within the next few months. There’s clearly some behind-the-scenes wrangling going on as they engage in what he described as “constructive” talks with regulators including the Securities and Exchange Commission (SEC). While he downplayed the role of Trump Jr. in their return, Trenchev believes he’s effectively communicating the importance of cryptocurrency for the U.S.
The company had previously exited the U.S. market due to regulatory issues, particularly concerning its crypto lending product. This culminated in a $45 million settlement with the SEC and several state regulators in early 2023. Nexo’s latest move comes at a time when the Trump administration is shaking up U.S. crypto regulations, diverging considerably from Joe Biden’s tougher stance last year, which followed a spate of scandals affecting various crypto entities.
Interestingly, under the new regime, the SEC appears to be easing its grip by dropping or pausing various lawsuits against crypto firms. Also noteworthy is how banking regulators have ceased issuing cautionary guidelines on crypto-related risks. Trenchev remarked on a significant shift in America’s attitude towards digital currencies, stating, “There’s actual work being done to ensure the U.S. becomes a prime hub for crypto, and we’re witnessing it ourselves.”
Despite this warming of relations, experts urge caution. Dan Boyle of Boies Schiller Flexner recently warned that while conditions seem to be improving, it’s no time for crypto businesses to consider themselves in the clear. “This shouldn’t be seen as a get out of jail free card, but rather a shift in attitude. Market participants must be aware of this,” he noted. Boyle anticipates a greater separation in the crypto world, where compliant firms thrive while others might linger outside regulatory frameworks, leading to a clearer landscape for the industry.
