AMC Entertainment Holdings CEO and Chairman Adam Aron launched a blistering attack on Robinhood over its tokenized version of AMC stock. He went as far as to question the legality of products that were created without the movie theater chain’s involvement.
In a post on X on Thursday, Aron said AMC had “no connection” to the token and did not approve or endorse it. He also took aim at the fact that Robinhood’s stock tokens are not registered under US securities laws, and called the practice “contemptible, outrageous, disgusting” and said AMC instructed outside securities counsel to review the matter.
Robinhood CEO Vlad Tenev responded publicly with a terse: “What’s the concern?”
Robinhood’s own documentation helps explain the unusual structure. Its Stock Tokens are not shares in the companies they track. Instead, they are tokenized debt securities issued by Robinhood Assets (Jersey) Limited that provide economic exposure to underlying stocks and ETFs.
Holders do not receive ownership in AMC, voting rights or other shareholder rights. Robinhood says the products are not available to US residents and currently cover more than 190 stocks and ETFs.
The tokens are also ERC-20 assets, which allows them to be held and transferred on-chain and integrated into blockchain applications.
Why the Legal Question Is More Complicated
Aron’s criticism puts a spotlight on a key issue surrounding tokenized equities: whether companies should have any say over financial products that replicate exposure to their shares.
However, the lack of US securities registration does not by itself establish that Robinhood’s offering is illegal. SEC Regulation S provides a framework through which securities can be offered and sold outside the United States without registration, subject to specific conditions. Robinhood explicitly prohibits its Stock Tokens from being offered to US persons.
AMC is not the first company to object. OpenAI previously rejected Robinhood tokens linked to the private AI company, and made sure to clarify that they were not OpenAI equity and had not been authorized by the firm.
AMC Entertainment stock price (Source: CoinCodex)
Meanwhile, AMC shares closed Thursday at $2.54, down 3.79%, before rebounding sharply. The stock was trading at approximately $2.90 in premarket trading Friday, up 14.17%.