Robinhood CEO defends AMC stock tokens against AMC CEO criticism

Robinhood defends AMC stock tokens

Robinhood CEO Vlad Tenev told CNBC on Wednesday that the platform does not need AMC Entertainment’s permission to offer stock tokens that track the movie‑theater chain’s shares.

Key points

• Robinhood’s tokens are debt securities backed one‑to‑one by an underlying AMC share held as collateral.
• Token holders receive dividends but do not get voting rights on the underlying shares.
• AMC CEO Adam Aron called the tokens a “fake market” and asked Robinhood to stop issuing them.
• Tenev said issuers cannot control every third‑party product that references their shares.

Robinhood’s position

In an interview on CNBC’s “Squawk Box,” Tenev explained that once a company’s shares are publicly traded, the company cannot block other firms from creating securities that reference those shares. He added that the need for issuer consent depends on the specific product, and that Robinhood’s stock tokens should not automatically require AMC’s approval.

AMC’s response

Adam Aron posted on X (formerly Twitter) that AMC has no connection to Robinhood’s token product and does not condone it. He described the practice as “contemptible” and “outrageous,” and said the company would consider involving the U.S. Securities and Exchange Commission.

Industry commentary

Graham Rodford, CEO of the UK‑regulated exchange Archax, noted a difference between putting a share on a blockchain and issuing a separate instrument that tracks it. Carlos Domingo, CEO of tokenization firm Securitize, raised concerns about how such tokens trade, citing an AMC‑linked token trading pair.

Confirmed facts

• Tenev’s statements on CNBC are recorded and reported.
• AMC CEO’s X posts and public comments are documented.
• Robinhood describes its tokens as debt securities backed 1:1 by underlying shares.

Open questions

• Robinhood has not announced whether it will vote on the shares held as collateral.
• The regulatory outcome, including possible SEC involvement, remains uncertain.

Why the debate matters

The clash highlights a broader discussion about tokenized stocks. It raises the question of whether companies should have a say when third parties create financial products that reference their shares.

Next steps

AMC has said it may bring the issue to the SEC. Robinhood has not indicated any change to its token offering at this time.

Sources

• CoinDesk