According to Merkle Science CEO Mriganka Pattnaik, crypto firms will not disappear from the U.S. anytime soon. Pattnaik’s comment is a fresh take in light of the recent regulatory crackdown on cryptocurrency firms in the U.S., such as Binance, Coinbase, etc. Merkle Science is an India-based blockchain analysis firm.
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Despite the uncertain regulatory environment in the U.S., Pattnaik believed crypto activity will continue in the country, at least in the medium term. Pattnaik stated, “I do think that five years down the line, the majority of activity will still be in the United States.”
Why will crypto firms continue working in the U.S.?
Despite countries like India, China, and the United Arab Emirates having “strong consumer markets,” the U.S. consistently leads the world in innovation, Pattnaik said. Furthermore, the talent pool in the nation is larger. The “general market dynamics” of the American economy, according to Pattnaik, are the fundamental factors influencing crypto enterprises’ decisions to continue the majority of their activities here.
Pattnaik believed that the current strong regulatory environment is an overreaction to everything that happened with FTX. He mentioned,
“Over time, things will become moderated, and there’ll be a lot more clarity in the U.S.”
Apart from Pattnaik’s opinion, there are several more reasons why crypto firms may want to continue their operations in the U.S. The U.S. might not have very clear laws around cryptocurrency just yet, but the chances are very high that a rule book will come around very soon. Moreover, the U.S. has a very strong justice system, that very few regions around the world have. Furthermore, the U.S. uses the world currency standard, the U.S. Dollar, which adds an incentive for better financial expansion and growth.
However, there is no denying the fact that crypto firms are at odds on how to move ahead with their operations in the U.S. Many projects have faced delisting on exchanges due to the SEC’s labeling them as “unregistered securities.”
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Industry proponents expect the current lawsuits against Ripple, Binance, and Coinbase to offer more light on how the industry will be regulated in the U.S. The country is still one of the largest investors in crypto, and clear laws and regulations will help the thriving industry even more.