AMC Blocks Robinhood From Tokenizing Its Shares Under New SEC Rules
AMC CEO adam Aron Vows to Block Robinhood Stock Tokens
AMC Entertainment CEO Adam Aron announced Thursday that the company will not consent to Robinhood creating stock tokens that replicate AMC shares in the United States.
Aron called the tokens "fake, synthetic shares" and said they could affect AMC's capital structure. "AMC should control our financial destiny, not Robinhood," he wrote on X, tagging Robinhood CEO Vlad Tenev and legal chief Dan Gallagher.
This renews a dispute between the two companies that began in early September when Aron asked Robinhood to stop trading AMC stock tokens and Tenev responded by saying the company "stands behind Stock Tokens."
What the SEC Objection Process Allows
Aron referenced a new SEC framework in his post. The regulator's Sept. 17 Innovation Exemption order creates a process where a company can object to having its stock tokenized on a U.S. trading venue.
Under the rules, a trading platform must notify the underlying company in writing before listing a tokenized stock from a third party. The company then has 30 calendar days to object in writing. If it does, the venue cannot offer that tokenized stock for trading under the exemption.
The framework also says token holders must receive the same rights as conventional share owners, including dividends and voting rights. It explicitly excludes third-party securities that only offer synthetic exposure to another security.
Robinhood's Offshore Tokens Operate Differently
Robinhood's current stock tokens are issued by Robinhood Assets (Jersey) Limited as debt securities. The company says these tokens are backed one-for-one by real shares but give holders no legal or beneficial ownership rights in the underlying companies. Robinhood's disclosures prohibit offers or sales in the United States or to U.S. persons.
This offshore structure is distinct from what the SEC's new framework covers. A company objection under the SEC rules blocks trading on a specific notified U.S. venue — it is not a general veto over all tokenization activity, nor does it automatically halt Robinhood's offshore product.
Robinhood markets more than 190 stock tokens linked to various companies and exchange-traded funds.
What This Means Going Forward
The situation highlights a key tension in the emerging space of tokenized stocks. Companies now have a formal mechanism under the SEC exemption to block tokenization on U.S. venues, but that power is limited to the specific venues they object against.
Robinhood's offshore tokens, which do not convey shareholder rights, appear to operate outside the scope of the new objection process. The company has not yet publicly responded to Aron's latest statement.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.