Robinhood CEO rejects AMC's veto on stock tokens

Robinhood CEO Vlad Tenev defends AMC stock tokens: Listed companies should not automatically control third-party securities

On September 9, Robinhood CEO Vlad Tenev defended the company's issuance of AMC stock tokens. He argued that listed companies should not automatically have control over third-party securities that cite their listed shares.

Core Disputes and Official Positions

Tenev stated that AMC's consent is not required when issuing tokens that cite publicly traded stocks. Robinhood described each stock token as a debt security backed one-on-one by underlying mortgage shares. Token holders can receive dividend adjustments but do not enjoy voting rights associated with the cited AMC shares.

Previously, AMC Entertainment CEO Adam Aron threatened legal and regulatory action to require Robinhood to stop providing AMC tokens. However, Robinhood has not announced how it will vote on the underlying shares held as collateral.

Tenev made the above remarks in an interview with CNBC's "Squawk Box" program, the first time he made a televised response since his dispute with AMC CEO Adam Aron escalated.

"Issuers should have control over the rights and obligations of the shares they issue, but that does not mean they control everything related to it," Tenev said. He believes companies cannot prevent independent bodies from issuing independent securities that cite publicly traded stocks.

"Issuer agreement depends on what is being done," Tenev added. He said Robinhood's products "should not automatically require issuer consent," although that position has not yet been publicly ruled by the Securities and Exchange Commission or courts.

AMC's objection

Aron disagreed with this interpretation. He believes Robinhood used AMC's name and share price to create a parallel financial product without the company's involvement. At the heart of the disagreement is whether economic risk exposure should be marketed as stock tokens when the holder does not legally own the shares cited.

Nature of tokens: Debt securities rather than stocks

Tenev pointed out that each of Robinhood's stock tokens is backed one-to-one by underlying shares held as collateral. The token itself is a debt security issued by Robinhood Assets Jersey Limited, not a stock issued by AMC.

Investors can obtain exposure to changes in AMC's share price and payments that reflect dividends. They do not have the right to vote and will not be recorded on AMC's shareholder register. Their legal claim is against the token issuer, not directly against AMC.

Robinhood launched a stock token product for its European clients in June 2025, and subsequently expanded access through Robinhood Wallet. The product is not available for U.S. customers and is not registered under U.S. securities laws.

The company connects tokenization strategy with its dedicated blockchain based on Arbitrum technology. Robinhood Chain's fees provide a source of revenue for Arbitrum while supporting tokenized assets and other financial applications.

AMC CEO threatened legal action and reported to the SEC

Aron initially stated that AMC had nothing to do with Robinhood's tokens and did not authorize or endorse the product. He later called on Robinhood to "stop and terminate" trading in the product and said AMC's securities lawyers would review possible legal action.

AMC's CEO also said the company would refer the matter to the SEC. As of September 10, no public litigation or SEC enforcement actions have been identified regarding AMC tokens.

Dan Gallagher, Robinhood's chief legal officer, refused Aron's request. "We know U.S. securities laws well and wouldn't 'DECIST,'"Gallagher wrote, citing a spelling error in Aron's original post. Aron later said the spelling error was intentional humor.

Tenev then strengthened Gallagher's stance, saying Robinhood firmly supports its stock tokens. The company has not said it plans to remove products linked to AMC.

The issue of voting rights and token pricing remains unresolved

Robinhood controls the underlying shares used as collateral, but Tenev said the company has not announced how those shares will vote. Since token holders do not have direct voting rights, this leaves an unresolved governance issue.

The debate also touched on the issue of price formation. Carlos Domingo, CEO of Securitize, noted that a pair of tokens linked to AMC were reportedly traded at approximately 60 times the reference share price. Weak liquidity and limited arbitrage options can lead to a disconnect between token prices and the assets they track.

Robinhood said its tokens provide international investors with exposure to U.S. stocks. Critics argue that products known as stock tokens either represent direct legal ownership or should provide a clearer description to explain their debt-based structure.

The Federal Reserve has recognized that different legal models can be used for tokenized securities. Its regulatory guidance distinguishes between instruments that represent direct ownership and independent securities that reference underlying assets.

The next formal development could come from AMC's legal team or the SEC. Pending public action by both parties, Robinhood's AMC tokens remain open to eligible international users, and Tenev's interpretation of issuer consent remains the company's legal position rather than an established precedent.