Robinhood CEO Warns US Crypto Regulation Lags with Staking Blocked in 4 States While EU Leads

Robinhood’s boss has warned US crypto regulation is still in the offing as accounts remain closed in four states while Europe moves ahead.

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

He pointed out the lack of crypto staking in the four countries in the region, comparing it to the progress made in the European Union with share tokens.

Tenev Urges US to Take Action on Crypto Regulation

Speaking on social media, Tenev said participation remains one of the most sought-after features among Robinhood users. However, the company is unable to meet this demand in four US states “due to grid blackouts.”

The official also explained how there is still a lot of work to be done in terms of overseeing digital assets.

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

According to him, America needs to pass legislation that protects consumers and opens up new things for everyone. “We support the efforts of the Congress to pass the market creation bill. There is still work to be done, but we see a way and we are here to help,” he added.

The Robinhood CEO’s comments come amid the Senate Banking Committee’s recent decision to postpone the planned markup of the crypto market structure bill. The law seeks to define when crypto tokens are considered securities or assets. It also clarifies the regulatory roles of the SEC and CFTC, sets rules for staking, lending, and stablecoins, and introduces registration mechanisms for crypto exchanges and DeFi platforms.

Some crypto industry leaders have also expressed growing frustration over the US Senate’s recent delay in the crypto market structure bill.

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For example, Coinbase CEO Brian Armstrong criticized the bill’s potential to encourage traditional financial institutions and stifle innovation by over-regulating established platforms. Ultimately, this caused the exchange to withdraw its support for the current version of the law.

US Crypto Staking Lags as EU Advances with Tokenized Stocks

Crypto staking remains limited to four US states, including California, Maryland, New Jersey, and Wisconsin, due to ongoing litigation and increased investigative scrutiny. These restrictions stem from allegations that the services offered by platforms such as Coinbase and Robinhood are unregistered securities offerings, which has led to enforcement actions and state compliance measures.

On the other hand, the European Union has moved forward with its market rules on Crypto-Assets (MiCA), providing a unified framework for digital assets in all member states.

This regulatory clarification has allowed platforms to introduce advanced offerings such as tokenized stocks, allowing users to trade digital assets with confidence. Robinhood has already introduced token equity products in the region, while Tenev previously described it as the most important innovation in capital markets in more than a decade.