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Crypto Firms Won’t Leave US Despite Apparent Hostility

According to the CEO of blockchain analytics firm Merkle Science, the US will not lose its appeal as a crypto hub despite recent rumors to the contrary.
In recent months, a series of hostile regulatory actions targeting cryptocurrency companies in the United States has caused many industry executives to look elsewhere.
Despite this, Mriganka Pattnaik, co-founder and CEO of Merkle Science, believes that the crypto business will remain in the country, at least in the medium term.

“I think it’s a bit counterintuitive, but I believe in five years most of the activity will still be in the United States.”

Pattnaik noted that regions like India, China and the UAE boast “strong consumer markets”, but the US has a much higher level of innovation and a “larger talent pool”.
Pattnaik also cited the “broad market dynamics” of the US economy – particularly tax net worth – as the main reasons for this. Cryptocurrency firms will likely choose to keep most of their operations in the United States..
Recent moves by U.S. regulators – specifically the Securities and Exchange Commission against crypto companies – have created a set of “innovation” narratives to move abroad. Following the FTX collapse, Coinbase CEO Brian Armstrong blamed le. vague regulations Having removed “95% of trading activity” from US soil.

FTX was an offshore exchange not regulated by the SEC.
The problem is that the SEC failed to create regulatory transparency here in the US, with many American investors (and 95% of their trading activity) going overseas.
There is no point in penalizing US companies for this.

On April 18, Armstrong, Coinbase may consider moving its headquarters to the UK.
Patnaik, recent government policies and executive actions Against Coinbase and Binance undeniably harsh, but all this is a “Overreaction to what happened with FTX”.
“Over time the waters will recede and there will be much more clarity in the US”added.

Related: Michael Saylor: Due to regulators, the crypto industry is “destined” to focus on Bitcoin

Unsurprisingly, not everyone agrees with Pattnaik.
in an interview by coin telegramBinance Dubai CEO Alex Chehade said that all major crypto companies, especially the US, desperately need clear and consistent regulations.

“We don’t want to create a situation where the goalposts move. For big companies, you need predictability, planning and budgeting.”

Earlier this year, Ripple CEO Brad Garlinghouse said that the cryptocurrency industry’s approaches to regulation are “already starting to emerge” from the US. Singapore lagged behind other cryptocurrency-friendly regions like UAE and Switzerland.
On March 20, it was revealed that more than 80 companies from around the world have applied for a license for cryptocurrency services in Hong Kong as part of its renewed efforts to become the leading Web3 hub in the region.
Months later, on June 1, Winklevoss-owned cryptocurrency exchange Gemini announced that it plans to acquire a license for crypto services in the UAE. Cameron and Tyler Winklevoss cited the “hostility and lack of clarity” regarding cryptocurrency regulation in the United States as the reason.

Translation of Walter Rizzo

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