Robinhood CEO Urges US Crypto Regulation as EU Advances

Speaking on social media, Robinhood CEO Vlad Tenev voiced mounting industry frustration with the slow pace of U.S. crypto regulation. He identified staking—a process allowing users to earn rewards by participating in blockchain network operations—as one of the most sought-after features among Robinhood’s user base. However, Tenev revealed the company is unable to offer this service in California, Maryland, New Jersey, and Wisconsin “due to the current gridlock.” This limitation stems from state-level allegations that staking services constitute unregistered securities offerings, leading to litigation and enforcement actions against platforms like Robinhood and Coinbase.

Tenev’s critique extends beyond state-level issues to a broader federal stalemate. “It’s time for the US to lead on crypto policy,” he wrote, calling for legislation that balances consumer protection with innovation. He specifically expressed support for Congress’s efforts to pass a comprehensive crypto market structure bill, stating, “We see a path and are here to help.” His comments arrive at a pivotal moment, as the Senate Banking Committee has just postponed its planned markup of that very legislation, a delay that has amplified concerns across the industry.

The delayed legislation, a sweeping crypto market structure bill, is designed to address foundational regulatory ambiguities. Its key provisions aim to define when a crypto token is considered a security—falling under the Securities and Exchange Commission (SEC)—or a commodity, overseen by the Commodity Futures Trading Commission (CFTC). Furthermore, the bill seeks to establish clear rules for staking, lending, and stablecoins while creating registration pathways for centralized crypto exchanges and decentralized finance (DeFi) platforms.

However, the Senate’s postponement has not only drawn criticism from Tenev but has also sparked a backlash from other crypto leaders. Coinbase CEO Brian Armstrong has been particularly vocal, criticizing the bill’s current form for its potential to favor traditional financial institutions and overregulate decentralized platforms, which he argues would stifle innovation. This disagreement led Coinbase to withdraw its support for the legislation, highlighting a rift within the industry regarding the optimal regulatory approach and complicating the path to consensus.

While the U.S. grapples with delays and discord, the European Union has moved decisively forward. The bloc’s Markets in Crypto-Assets (MiCA) regulations have established a unified framework for digital assets across all member states, providing the regulatory clarity that businesses crave. This established environment has already enabled European platforms to launch advanced financial products that remain mired in uncertainty in America.

A prime example is the introduction of tokenized stocks—digital assets that represent ownership in traditional equities. Robinhood itself has launched such products in the EU, with Tenev previously hailing tokenized equity as “the most significant innovation in capital markets in over a decade.” The ability to offer these products underscores a tangible competitive advantage gained through regulatory certainty. The EU’s progress with MiCA creates a stark contrast to the U.S. situation, where the absence of a federal framework leaves companies navigating a patchwork of state-level restrictions and federal uncertainty.

The divergent paths of the U.S. and EU represent more than a regulatory discrepancy; they signal a potential shift in financial innovation and market development. The ongoing U.S. gridlock on staking and comprehensive market structure rules risks ceding ground to jurisdictions that provide clearer operating environments. As Tenev’s comments emphasize, the demand for crypto services like staking is robust, and American companies are poised to meet it—if the regulatory landscape allows.

The core challenge for U.S. lawmakers, as highlighted by the delayed bill and the critiques from Tenev and Armstrong, is crafting rules that adequately protect investors without suffocating the technological innovation that defines the crypto sector. The coming months will be critical in determining whether Congress can bridge internal divides and pass legislation that provides the clarity seen in the EU, or if the American market will continue to lag, potentially driving both innovation and investment overseas.