Flowdesk’s Strategic Bet on the U.S. Crypto Market Pays Off Amid Regulatory Shifts

Guilhem Chaumont, CEO of Flowdesk, made a bold decision to expand the company’s presence in the U.S. despite the SEC’s aggressive stance against the crypto industry. A year later, the landscape has shifted significantly with the introduction of Bitcoin ETFs, the imminent approval of ether ETFs, and new pro-crypto legislation before the Senate. This move underscores Chaumont’s willingness to act on his convictions, even when the prevailing sentiment is against them.

In 2023, just before the SEC launched a rigorous campaign against the crypto sector, including lawsuits against Binance and several protocols, Chaumont announced plans to expand Flowdesk’s New York office. He believed that the benefits of operating within the vast and sophisticated U.S. capital markets outweighed the challenges posed by its regulatory environment.

At the time, Chaumont’s decision was seen as contrarian. CoinDesk had published an editorial suggesting that the U.S. government’s actions seemed to be aimed at undermining the crypto industry through stringent regulatory enforcement and a lack of clear rules. Nevertheless, Chaumont remained steadfast in his belief in the U.S. as a hub for crypto innovation and a significant market.

Since his announcement at Consensus 2023, Bitcoin’s price has surged nearly 150%, and the regulatory environment in the U.S. has become more favorable, with the SEC approving Bitcoin ETFs and expected to approve ether ETFs soon. Flowdesk’s early expansion in the U.S. positioned the company advantageously as the market rebounded.

Chaumont highlighted that Flowdesk has experienced substantial growth, becoming profitable with increased volumes and revenues. The approval of ETFs earlier this year has spurred positive momentum, validating Chaumont’s strategic bet on the U.S. market. However, challenges remain, including the complexities of dealing with U.S. counterparties due to multiple layers of licensing requirements.

Chaumont also emphasized the need for a simplified and harmonized regulatory framework for custody in the U.S., which could unlock significant business opportunities. He pointed to the European Union’s MiCA regulations as a successful example of such harmonization, allowing firms to operate across the region without needing multiple state-level licenses.

Reflecting on the progress made in the U.S. over the past year, Chaumont expressed optimism about the future, suggesting that further regulatory harmonization could accelerate growth. He remains hopeful that by Consensus 2025, these issues will be addressed, enabling even more rapid expansion for companies like Flowdesk.

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