Crypto firms won’t leave US despite apparent hostility: Merkle Science CEO

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Despite recent stories suggesting otherwise, the US will not lose its appeal as a crypto hub, according to the CEO of blockchain analytics firm Merkle Science.

A series of hostile regulatory actions against crypto firms in the United States in recent months has led many senior crypto executives to turn their gaze elsewhere.

Despite this, Mriganka Pattnaik, the co-founder and CEO of Merkle Science, believes that crypto business will remain in the country, at least in the medium term.

My opinion is a little contrarian here, but I think in five years the majority of the activity will still be in the United States.

While Pattnaik noted that regions like India, China and the United Arab Emirates have strong consumer markets, the United States commands a much higher level of innovation and has a deeper talent pool. .

Pattnaik also pointed to the general market dynamics of the US economy, particularly the clarity of taxation, as the main reasons crypto firms are likely to choose to keep the bulk of their operations in the US.

Recent actions by US regulators, namely the SEC against crypto firms, have created a narrative of “innovation” going overseas. Following FTX’s collapse, Coinbase CEO Brian Armstrong blamed unclear regulations for keeping 95% of trading activity away from US soil.

On April 18, Armstrong revealed that Coinbase may consider moving its headquarters to the UK.

While Pattnaik admitted that recent government policymaking and enforcement actions against Coinbase and Binance are undeniably harsh, it was all an overreaction to everything that happened with FTX.

Over time, things will become subdued and there will be much more clarity in the United States, he added.

Related: Crypto Industry Destined To Be BTC-Centric Due To Regulators: Michael Saylor

Not surprisingly, not everyone is inclined to agree with Pattnaik.

In an interview with Cointelegraph, Binance Dubai Managing Director Alex Chehade said that all major crypto firms, especially those located in the United States, desperately need clear and consistent regulations.

You don’t want to set up where the goal posts move. For big business, you need predictability, you need to plan, and you need to budget.

Earlier in the year, Ripple CEO Brad Garlinghouse claimed that the crypto industry has already started to move outside of the US as its approach to regulation has lagged behind other crypto-friendly regions like Singapore, UAE, and Switzerland.

On March 20, it was revealed that more than 80 companies from around the world had applied for a crypto services license in Hong Kong as part of the region’s renewed efforts to become a leading Web3 hub.

Months later, on June 1, Winklevoss-owned crypto exchange Gemini announced that it would be pursuing a license for crypto services in the United Arab Emirates. Cameron and Tyler Winklevoss cited hostility and a lack of clarity over U.S. crypto regulation as the reason for the move.

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