Robinhood CEO Vlad Tenev is defending his company's stock token product after AMC Entertainment objected to a token linked to AMC shares. Tenev argues the dispute centers on legal structure rather than technology, asserting that companies should control rights tied to their shares but not every lawful use of those shares once investors hold them.
AMC CEO Adam Aron said on September 4 that AMC has no relationship with Robinhood's token and demanded the company stop offering it. Aron raised concerns that the structure could confuse investors about what rights they hold and potentially affect AMC's ability to raise capital through official securities.
How Robinhood's Tokens Work
Robinhood's stock tokens are not shares placed on a blockchain. The company classifies them as debt securities issued by Robinhood Assets, a Jersey-based entity. Each token tracks the price of an underlying stock and is backed one-for-one by real shares held with a U.S. custody partner.
Token holders do not appear on a company's shareholder register, receive no voting rights, and cannot claim legal rights tied to direct stock ownership. While Robinhood says its tokens can pass along dividend value through product terms, corporate actions depend on Robinhood's contract terms rather than the referenced company's actual policies.
The Legal Question
Tenev laid out his position in a post on September 11, categorizing tokenized stocks into three models: a company tokenizing its own shares directly, a third party tokenizing shares it holds in custody, or an independent firm issuing a separate security that tracks another company's stock. He argued that issuer approval should only be required in the first two cases, as the third model changes nothing about the underlying stock.
The Securities and Exchange Commission has not ruled on whether third-party tokens require the referenced company's consent. In January, three SEC divisions published a joint statement describing categories of tokenized securities but did not decide this question. A separate SEC proposal released in September would update transfer-agent rules to allow blockchain systems to support official securities records, though it would not automatically convert a token into a real share.
As of September 14, AMC has not filed a lawsuit against Robinhood, and the SEC has not announced any investigation or public response to Aron's threatened regulatory referral.
Robinhood launched its current Stock Tokens outside the United States in July. The products remain unavailable to U.S. investors and several other jurisdictions.
