Robinhood CEO warns US crypto regulation is lagging, blocking strike in four states as EU makes progress

Robinhood’s CEO warned that US crypto regulation is lagging as staking remains blocked in four states while Europe makes progress.

Robinhood CEO Vlad Tenev has openly criticized the slow progress of US crypto regulations.

He pointed to the lack of crypto staking in four local states, comparing this to the progress already made in the European Union with tokenized stocks.

Tenev urges America to take action on crypto regulation

Speaking on social media, Tenev said that staking remains one of the most sought-after features among Robinhood users. However, in four US states the company cannot meet this demand “due to the current gridlock.”

The director further explained that there is more work to be done in the area of ​​digital asset oversight.

“It’s time for the US to take the lead on crypto policy,” he wrote.

According to him, America must pass legislation that protects consumers and makes innovation possible for everyone. “We support Congress’ efforts to pass the Market Structure Act. There is still work to be done, but we see a path and are here to help,” he added.

The Robinhood CEO’s comments come amid the Senate Banking Committee’s latest decision to delay the planned increase in the sweeping crypto market structure bill. The legislation attempts to define when crypto tokens are considered securities or commodities. It also clarifies the regulatory role of the SEC and CFTC, establishes rules for staking, lending and stablecoins, and introduces registration pathways for crypto exchanges and DeFi platforms.

Other crypto industry leaders have also expressed growing frustration over the U.S. Senate’s latest delay of the crypto market structure bill.

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For example, Coinbase CEO Brian Armstrong has criticized the bill’s potential to promote traditional financial institutions and limit innovation by overregulating decentralized platforms. Ultimately, this led to the exchange withdrawing its support for the current version of the legislation.

US Crypto Staking Lagging As EU Moves Forward With Tokenized Stocks

Cryptocurrency staking remains limited in four US states, including California, Maryland, New Jersey and Wisconsin, due to ongoing lawsuits and increased scrutiny. These restrictions stem from allegations that staking services offered by platforms such as Coinbase and Robinhood are unregistered securities offerings, which have resulted in enforcement actions and compliance actions at the state level.

On the other hand, the European Union has made progress with its Markets in Crypto-Assets (MiCA) rules, which provide a uniform framework for digital assets across all member states.

This regulatory clarity has allowed platforms to introduce advanced offerings, such as tokenized stocks, allowing users to trade the digital assets with confidence. Robinhood has already launched tokenized equity products in the region, with Tenev previously describing this as the most significant innovation in capital markets in more than a decade.