Despite mounting regulatory pressure, Merkle Science CEO Mriganka Pattnaik believes the United States will remain a core hub for the crypto industry.
While recent crackdowns by U.S. regulators have prompted concerns of an industry exodus, Pattnaik offers a contrarian view.
“I do think that five years down the line, the majority of activity will still be in the United States,” he said.
The U.S. may be facing criticism for its tough stance, especially in the wake of the FTX collapse, but Pattnaik argues that its strong innovation ecosystem, deep talent pool, and clear tax structures make it too important to abandon.
He acknowledges that other regions including India, China, and the UAE have strong consumer markets, but the U.S. continues to lead in infrastructure and expertise.
Regulatory uncertainty has pushed some firms to consider relocating. Coinbase CEO Brian Armstrong has suggested a move to the UK, while Ripple CEO Brad Garlinghouse noted that the industry has already begun shifting abroad. The Winklevoss twins also announced plans to expand Gemini’s operations to the UAE, citing U.S. regulatory hostility.
However, Pattnaik believes the regulatory environment in the U.S. will stabilise over time: “Much of the current enforcement is an overreaction to FTX. Eventually, things will moderate, and clarity will return.”
Still, others in the industry remain sceptical. Binance Dubai’s Alex Chehade stressed that without predictable regulations, the U.S. risks losing its competitive edge:
“You don’t want to set up where the goalposts move.”
Meanwhile, regions like Hong Kong and the UAE are seizing the moment, welcoming global crypto firms with clearer rules and proactive licensing regimes.
Even so, Pattnaik remains confident that the U.S., with its foundational strengths, will continue to play a leading role in the future of crypto.