Market Maker Flowdesk Bet to Scale US Presence Pays Off 

Flowdesk chief executive hails contrarian bet to expand during crypto winter as market maker gains in improving US crypto environment. 

Flowdesk CEO Guilhem Chaumont hails the conviction to pursue US expansion during crypto winter despite the Securities and Exchange Commission’s (SEC) intense focus on the industry. The contrarian bet taken a year ago is paying off, as the US now has an improved regulatory framework. 

Flowdesk executive reflects on the progress realized since a year ago, particularly citing the success of Bitcoin exchange-traded funds (ETFs). Besides, the US is set to have Ether ETFs listed imminently upon the approval of pending S1s. 

Flowdesk Bet in the US Pays Off

Market makers consider the bet to pay off mainly with the pro-crypto legislation dubbed the Financial Innovation and Technology for the 21st Century Act (FIT21) before the Senate. The cold winter a year ago turned spring and later summer to yield a favorable market environment.  Chaumont considers that the improved regulations imply that the Flowdesk is well-positioned to tap into emerging opportunities. 

Chaumont reiterated the need for Flowdesk to pursue the US market even when the outlook was against the Paris-based market maker. The expansion of the New York office began in 2023, days before the SEC initiated the all-out assault on crypto space to sue crypto exchange Binance and several protocols. 

Chaumont considers the sophistication and scale of capital markets in the US a viable opportunity to pursue. Notably, the underlying potential created a worthwhile trade-off to navigate the regulatory regime. 

Chaumont notes that pursuing the US market emerged as a contrarian move. Such aligns with the editorial pieces indicating that theories suggesting the US government agencies were nearly killing the crypto are accurate. 

In particular, the editorial suggested that the government intentionally suppressed the digital asset industry via punitive enforcement actions. Further, the US portrayed unwillingness to establish workable rules for the crypto space. 

Flowdesk chief considers the entities’ philosophy unchanged and harbors the huge conviction to pursue the market direction. Chaumont notes that building a successful crypto company involves making contrarian bets by spotting opportunities that escape others. 

Flowdesk overlooks the short-term macro events instead of pursuing the long positions. Such philosophy plays out in the enthusiastic perspective regarding the US crypto innovation. The CEO considers the US a land harboring innovation and a market of untapped potential. 

Notably, Bitcoin price has surged nearly 150% since Chaumont’s speech at Consensus 2023, according to CoinGecko data. Additionally, the US regulatory environment improved with the Gary Gensler-led SEC greenlighting Bitcoin ETFs. A similar approval of ether ETFs appears imminent later this month. 

Tapping First Mover Advantages

Flowdesk expansion into the US last year yielded a first-mover advantage since the market would rebound after the bleak experience. Chaumont admits that the firm gains significant market share as the conditions improve. Profitability is sure as volumes and revenues increase.  

The market maker head credits the ETF approval in January as fueling the revenues and volumes. He acknowledges positive news that suggests the contrarian bet would pay off. 

The US crypto space is improving despite work in progress status to realize desired changes. For instance, Chaumont projects that bipartisan support is necessary for the Senate to pass the FIT21 – which is highly regarded as a step in the right direction. 

Replicate EU Harmony under MiCA in US Legislation 

Chaumont admits the added complexity that Flowdesk confronts, particularly when engaging US counterparties. Such engagements necessitate navigating the license layers, suggestive of operational limitations within the market. 

Chaumont decries the custody headache, given the absence of simplified and global harmony in the regulatory framework. He adds that, done right, it would become the catalyst to unlock the massive business potential in the US. 

The majority of the problems witnessed in the US are solvable with harmonization. Chaumont cites the European Union’s harmony via the Markets in Crypto Act (MiCA) regulations.

The EU approach advances the argument opposing the necessity of having multiple licenses within the individual states. Such a view contradicts the present position in the US. Europe harmony via MiCA eliminates the need to secure numerous registrations as one can operate across leveraging a single license. 

The Flowdesk boss is optimistic that the US will realize such harmonization before the Consensus 2025. Chaumont considers that the absence of bottlenecks and uncertainties in the US would have enabled Flowdesk to grow three times faster.