Robinhood CEO Vlad Tenev pushed back against AMC Entertainment CEO Adam Aron on September 9, arguing that publicly traded companies should not automatically control third-party securities that reference their listed shares. Speaking on CNBC’s Squawk Box, Tenev said: ‘Issuers should have control and do have control over the rights and obligations of the stock that they issue, but that doesn’t mean they control everything about it.’
The dispute centers on Robinhood’s tokenized stock products, including an AMC-linked token. Tenev confirmed that each Robinhood stock token is a debt security issued by Robinhood Assets Jersey Limited, backed one-for-one by an underlying share held as collateral. Holders receive dividend adjustments but no voting rights and are not recorded on AMC’s shareholder register. The products are offered under Regulation S to eligible international customers and are not available in the United States.
AMC CEO Adam Aron has demanded that Robinhood ‘cease and desist’ trading the AMC tokens, calling the offering ‘contemptible, outrageous, disgusting, detestable, inexcusable, vile.’ He said AMC had hired outside securities counsel and would raise the matter with the SEC. No public lawsuit or SEC enforcement action had been announced as of September 10.
Robinhood’s chief legal officer Dan Gallagher rejected Aron’s demand, writing: ‘We know a little something about the U.S. securities laws and will not DECIST.’ Tenev said issuer consent depends on how a product is structured and that Robinhood’s model should not automatically require consent.
The debate has drawn broader industry attention. Securitize CEO Carlos Domingo noted that one AMC-linked token pair reportedly traded at roughly 60 times the reference share price, raising concerns about thin liquidity and price divergence. Archax CEO Graham Rodford distinguished between putting an actual share on a blockchain and issuing a separate instrument that tracks it. Backpack CEO Armani Ferrante argued that token demand does not necessarily flow through to demand for the underlying stock.
Robinhood’s tokenization strategy is connected to a dedicated blockchain based on Arbitrum technology. The company has not announced how it will vote the underlying AMC shares held as collateral, leaving governance questions unresolved.
