Robinhood refuses AMC CEO’s request to discontinue AMC‑linked Stock Token

Robinhood’s chief legal, compliance, and corporate affairs officer, Dan Gallagher, told AMC to direct any objections to the company’s lawyers and declined to withdraw the AMC‑linked Stock Token. Robinhood CEO Vlad Tenev affirmed the firm’s support for the product.

Product structure

Robinhood describes the Stock Token as a tokenized debt security issued by Robinhood Assets (Jersey) Limited (RHJ). The token tracks the economics of AMC common stock but does not confer any legal or beneficial ownership in AMC. Holders are creditors of RHJ and have no voting, meeting, pre‑emption, or direct dividend rights.

Key distinctions highlighted by Robinhood

• Issuer: Robinhood Assets (Jersey) Limited.
• Legal form: Debt security linked to AMC common stock.
• Holder relationship: Creditor of RHJ, not shareholder of AMC.
• Corporate‑action treatment: Dividends and stock splits are reflected through on‑chain mechanics, not direct rights.
• Distribution limits: The prospectus prohibits offering, sale, or delivery in the United States or to U.S. persons.

AMC’s objections

Adam Aron argued that the token could blur the line between economic exposure and actual share ownership, separate trading activity from AMC’s capital‑raising process, and deny token holders the rights attached to AMC shares. He indicated the company would seek review by the Securities and Exchange Commission.

Regulatory status

The Stock Token remains unregistered under U.S. securities laws and is offered only to eligible customers outside the United States through the Jersey entity. No regulator decision has been issued on the product at this time.

Context

The dispute echoes the 2021 “meme‑stock” episode in which Robinhood restricted purchases of AMC and other volatile stocks, a move later examined by the SEC. Today, the conflict centers on whether a broker can continue offering a debt‑based token that mirrors a meme‑stock’s price without granting shareholder rights.