Robinhood CEO Defends Tokenized Stocks Amid AMC Criticism

Robinhood chief executive Vlad Tenev appeared on CNBC to defend the company’s tokenized stock products after AMC Entertainment’s CEO Adam Aron publicly criticized them.

Background of the dispute

Robinhood expanded its tokenized stock offering through Robinhood Assets Limited to include AMC and more than 190 other companies without those firms directly authorising the tokens. Aron responded on X, arguing that the tokens give exposure to AMC stock without the company’s involvement and could breach U.S. securities law.

Robinhood’s position

Tenev told CNBC that a public company cannot control every financial product built on its shares once they begin trading. He described the tokens as debt securities backed one‑to‑one by the underlying shares held as collateral, providing economic exposure but no voting rights.

Legal perspective

Robinhood’s chief legal officer, former SEC commissioner Dan Gallagher, defended the firm’s interpretation of securities law, stating that the company is knowledgeable about the regulations and willing to discuss the matter with regulators.

Market reaction

Following the public exchange, AMC’s stock rose up to 15% in pre‑market trading as traders bought both the shares and the related tokens.

Regulatory implications

The clash highlights an unresolved regulatory question: whether a brokerage can issue tradable tokens linked to a public company’s stock without that company’s consent. AMC’s potential SEC complaint could become a key test case.