<\/p>\n
Despite recent narratives suggesting differently, the United States won’t be losing its allure as a crypto hub, according to the\u00a0CEO of blockchain analytics firm Merkle Science.<\/p>\n
A swathe of hostile regulatory actions leveled at crypto firms in the United States in recent months has led many top crypto executives to turn their gaze elsewhere.<\/p>\n
Despite this, Mriganka Pattnaik, the co-founder and CEO of Merkle Science believes that crypto activity will remain in the country for at least the medium term.<\/p>\n
\u201cMy opinion is a little bit contrarian here, but I do think that five years down the line, the majority of activity will still be in the United States.\u201d <\/p><\/blockquote>\n
While Pattnaik noted that regions like India, China and the United Arab Emirates have \u201cstrong consumer markets,\u201d the U.S. commands a much higher level of innovation and has a \u201cdeeper talent pool.\u201d <\/p>\n
Pattnaik also pointed to the \u201cgeneral market dynamics\u201d of the American economy \u2014 specifically the clarity around taxation \u2014 as the key reasons for why crypto firms will likely choose to maintain the bulk of their operations in the United States.<\/p>\n
Recent moves by U.S. regulators, namely the SEC against crypto firms, have created a narrative of “innovation” going offshore. In the wake of the FTX collapse, Coinbase CEO Brian Armstrong blamed unclear regulations for driving \u201c95% of trading activity\u201d away from U.S. soil. <\/p>\n
\nhttps:\/\/t.co\/0HxlRiI6Sy was an offshore exchange not regulated by the SEC.<\/p>\n
The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore.<\/p>\n
Punishing US companies for this makes no sense.<\/p>\n