Merkle Science CEO, Mriganka Pattnaik, has expressed a “contrarian” viewpoint, asserting that crypto companies will not disappear from the United States in the near future. Despite prevailing narratives suggesting otherwise, the United States will continue to retain its appeal as a prominent digital currency hub, as stated by the CEO of blockchain analytics firm, Merkle Science.
In recent months, numerous regulatory measures targeting digital currency firms in the United States have prompted many top executives in the industry to explore other options.
Nevertheless, according to Mriganka Pattnaik, co-founder and CEO of Merkle Science, he believes that crypto activities will persist in the country, at least for the medium term.
According to Pattnaik, although regions like India, China, and the United Arab Emirates have robust consumer markets, the United States possesses a significantly higher level of innovation and a more extensive talent pool.
Pattnaik also highlighted the overall market dynamics of the American economy, particularly the clarity surrounding taxation, as the primary reasons why digital currency companies are likely to choose to maintain the majority of their operations in the United States.
The recent actions taken by U.S. regulators, particularly the Securities and Exchange Commission’s actions against crypto firms, have contributed to a narrative of offshore relocation for innovation. Following the collapse of FTX, Coinbase CEO Brian Armstrong attributed the migration of “95% of trading activity” away from U.S. soil to ambiguous regulations.
On April 18, Armstrong made public that Coinbase could potentially move its headquarters to the United Kingdom. Pattnaik acknowledged that the recent actions taken by the government regarding policies and enforcement actions against Coinbase and Binance have indeed been severe. However, he believes that this response has been an exaggerated reaction to the events involving FTX.
He further expressed his belief that with time, the situation will become more balanced, and there will be greater clarity in the United States regarding the regulatory landscape for crypto firms.
As expected, not everyone shares Pattnaik’s perspective.
During an interview, Alex Chehade, the general manager of Binance Dubai, expressed a different viewpoint. He stated that all major crypto companies, especially those based in the United States, are in dire need of clear and consistent regulatory measures.
Crypto Continues To make Waves
Earlier this year, Brad Garlinghouse, the CEO of Ripple, stated that the crypto industry had already begun shifting its operations outside of the United States. He argued that the U.S. regulatory approach had fallen behind other crypto-friendly regions such as Singapore, the UAE, and Switzerland.
On March 20, it was revealed that over 80 companies from various parts of the world had applied for a crypto services license in Hong Kong, as the region made renewed efforts to establish itself as a leading hub for Web3.
Several months later, on June 1, Gemini, a cryptocurrency exchange owned by the Winklevoss twins, announced its intention to pursue a crypto services license in the United Arab Emirates. Cameron and Tyler Winklevoss cited “hostility and a lack of clarity” regarding crypto regulation in the U.S. as the driving factor behind their decision to make the move.
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