Robinhood and AMC Clash Over Control of Stock Tokens
Robinhood Markets, Inc. (NASDAQ:HOOD) has expanded its tokenized shares offering to include over 190 public companies like AMC Entertainment Holdings, Inc. (NYSE:AMC), without direct approval from those firms. This move sparked a heated dispute after AMC CEO Adam Aron publicly condemned the tokens as unethical and potentially illegal on social media in early September. He warned that Robinhood's unregistered securities could undermine traditional shareholder relationships. Robinhood defended its position, with CLO Dan Gallagher dismissing concerns and asserting knowledge of U.S. securities law. CEO Vlad Tenev later explained during a CNBC interview that public companies do not have control over third-party products referencing their shares. He also advocated for modernizing market infrastructure to support tokenization globally. The conflict has drawn regulatory attention, with AMC threatening legal action through the SEC and Robinhood maintaining its stance on product independence.
Topics: corporate governance market reaction SEC compliance stock tokens