AMC Entertainment Chief Executive Adam Aron condemned Robinhood on Wednesday for issuing tokens that track his company's share price without AMC's participation or approval. Aron called the practice "contemptible, outrageous, disgusting, detestable, inexcusable, vile" and questioned its legality.
According to Aron, the tokens are not registered under U.S. securities laws. He stated that AMC has no connection to the program and does not condone it, and announced that the company would instruct outside securities counsel to investigate the matter immediately. Robinhood's token program reportedly covers more than 190 companies.
How the Tokens Work
Per Robinhood's documentation, the Stock Tokens are tokenized debt securities issued by Robinhood Assets (Jersey) Limited. They provide holders with economic exposure to a share price but grant no legal or beneficial rights in the underlying security or against the issuing company. Token holders therefore have no claim on AMC itself.
The tokens are not registered in the United States and cannot be offered to U.S. persons under Regulation S. They are also restricted in Canada, the United Kingdom, and Switzerland. Robinhood's base prospectus was approved by Liechtenstein's Financial Market Authority under EU rules.
Broader Context
Robinhood previously airdropped tokens tracking OpenAI and SpaceX to European users. OpenAI stated it had not partnered with Robinhood, was not involved in the product, and did not endorse it. The company noted that any transfer of its equity required approval it had not given.
Following that rollout, SEC Commissioner Hester Peirce cautioned that blockchains do "not have magical abilities to transform the nature of the underlying asset." Both Anthropic and OpenAI have warned that unauthorized vehicles selling exposure to their shares could leave buyers with nothing.
