A relatively new digital asset trading firm is making strategic moves to navigate U.S. crypto regulations by appointing a seasoned legal expert as its new compliance chief, FOX Business has learned.
Flowdesk, a French startup specializing in liquidity provision for crypto assets, has hired James Morgan, an experienced securities lawyer with a background in both traditional finance and digital assets. This appointment aims to strengthen Flowdesk’s position as it seeks to expand its presence in the U.S. market.
“The U.S. is a crucial market for us,” Flowdesk CEO Guilhem Chaumont told FOX Business. “Having someone like James, with nearly a decade of regulatory experience in crypto, will be instrumental in guiding our regulatory strategy and supporting our growth in the U.S.”
Since establishing its U.S. office a year ago, Flowdesk has been relatively low-profile but gained attention in January with a successful Series B funding round that included investments from crypto payments company Ripple. The firm also became a liquidity provider for Grayscale’s spot bitcoin and ethereum ETFs, which are significant in the crypto market.
Morgan’s appointment reflects a broader trend of crypto firms bringing in veterans from traditional finance to enhance their regulatory navigation and industry credibility. Flowdesk had previously appointed Reed Werbitt, a traditional finance veteran, as its U.S. CEO in September.
As U.S. regulators, including the Securities and Exchange Commission (SEC), grapple with how to regulate the rapidly evolving crypto industry, expertise in both traditional and digital securities law is increasingly in demand. Morgan brings a decade of experience in compliance roles at the New York Stock Exchange and the Miami Stock Exchange, along with more recent positions as general counsel at FalconX and Genesis Global Trading.
“The regulatory environment in the U.S. is evolving,” Morgan said. “The pace of change may accelerate, and Flowdesk is preparing to navigate these shifts effectively.”
The regulatory landscape has become a contentious issue, with ongoing debates between Republicans and Democrats over the future of crypto regulation. Republican presidential nominee Donald Trump has advocated for reducing regulatory burdens on the crypto industry, while current SEC Chairman Gary Gensler has taken a more aggressive stance, targeting major crypto firms for non-compliance with existing securities laws.
The outcome of the upcoming presidential election could significantly impact the regulatory environment for crypto. Trump and his running mate JD Vance have appealed to the pro-crypto community, positioning themselves as champions of the industry. With President Biden not seeking re-election, the future regulatory approach under a potential new administration remains uncertain.
Morgan’s role at Flowdesk positions the firm to better navigate these regulatory challenges and capitalize on future opportunities in the U.S. crypto market.
