According to Huoxing Finance, on September 4, AMC CEO Adam Aron responded to Robinhood CEO Vlad Tenev, stating that concerns over AMC’s stock tokens “nearly relate to the company’s survival.” He questioned why Robinhood, as a U.S. company, could issue products ostensibly representing AMC shares but not compliant with U.S. securities laws through an offshore operating entity based in Jersey. Adam Aron emphasized that AMC spends millions of dollars annually to comply with U.S. securities regulations, and Robinhood’s creation of a “synthetic equity market” could decouple stock token trading from a public company’s financing arrangements. Traditional shareholders hold rights such as voting, but Aron argued that stock tokens do not represent actual equity, nor do investors receive corresponding shareholder rights. Aron demanded that Vlad Tenev and Robinhood voluntarily halt trading of AMC stock tokens; otherwise, AMC has engaged external securities counsel to investigate potential legal actions to force their cessation. He also stated that he would raise inquiries with the U.S. Securities and Exchange Commission regarding Robinhood’s practices. Previously, AMC’s CEO published a statement this morning asserting that Robinhood is advancing a project to tokenize real-world assets and issue stock tokens for AMC and over 190 other companies. He clarified that AMC has no association with the project, does not endorse the practice, and will immediately engage external securities counsel to review the matter. Robinhood CEO Vlad Tenev responded that there is no cause for concern.
AMC CEO Calls for Halt to AMC Stock Token Trading, Threatens Legal Action
MarsBitShare
Summary
AMC CEO Adam Aron has called for an end to AMC stock token trading, warning of potential legal action. He criticized Robinhood for offering AMC tokens through an offshore entity, in violation of U.S. securities laws. Aron emphasized that stock tokens do not confer shareholder rights and could distort the securities versus commodities debate by creating a synthetic equity market. AMC is considering filing a complaint with the SEC. The move underscores growing tensions in the risk-on assets space as digital tokens gain popularity.
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