AMC CEO Calls for Halt to Robinhood’s AMC Stock Token, Robinhood Responds with Legal Challenge

AMC Entertainment CEO Adam Aron publicly urged Robinhood to stop trading the AMC‑referencing stock token, arguing that the token is unregistered and undermines investor rights. Robinhood’s chief legal officer, former SEC commissioner Dan Gallagher, responded that the company will not cease trading and invited AMC’s counsel to discuss the issue.

Background on the token

Robinhood issues stock tokens through Robinhood Assets (Jersey) Limited, an entity described in its disclosures as unregistered and unsupervised. The tokens are sold only to non‑U.S. persons, and only a single authorized participant (BBVI) can create them. Each token is marketed as providing economic exposure to the underlying share but does not confer legal or beneficial rights, voting privileges, or dividend payouts.

AMC’s demand

On Friday morning, Aron posted a message demanding that Robinhood “CEASE AND DECIST” trading of the AMC stock token and said AMC’s outside securities counsel was reviewing whether a legal halt could be forced. He highlighted that the token’s on‑chain supply had surged from about 158 k to 1.5 million in less than a day and that multiple memecoins with names spelling “AMC” had launched against it.

Robinhood’s response

Robinhood’s chief legal officer Dan Gallagher replied that the company knows U.S. securities laws and will not halt the token, adding, “Send your lawyers and we’ll educate them.” CEO Vlad Tenev later affirmed support for the stock tokens.

Market activity

During the 24‑hour period surrounding the dispute, the token traded at roughly $2.75, matching the price of AMC shares on Nasdaq. DEX data showed $200.8 million of volume across more than half a million transactions, with liquidity of $6.7 million. At least 23 memecoins launched pools against the AMC token, the largest reaching a $65.2 million market cap.

Regulatory context

Robinhood’s disclosures state that the tokens are not registered under the U.S. Securities Act of 1933, may not be sold to U.S. persons, and are not regulated by any supervisory authority. AMC has not filed a formal complaint with the SEC regarding the token.