Robinhood has rejected AMC Entertainment's demand to halt trading in tokens tied to the theater chain's stock, with the brokerage's leadership openly challenging the company to pursue legal action.
Dan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer, responded to AMC CEO Adam Aron on X, writing: "Send your lawyers and we'll educate them." Gallagher, a former Securities and Exchange Commission commissioner, said Robinhood knows "a little something about the U.S. securities laws." Robinhood CEO Vlad Tenev shared the post, stating: "We stand behind Stock Tokens."
Aron accused Robinhood of marketing a security that mimics AMC stock without complying with U.S. securities laws. He cited Robinhood's use of an issuer in Jersey and argued that the tokens undermine shareholder rights and companies' control over capital raising. He issued a cease-and-desist letter demanding the company stop trading AMC stock tokens and warned that AMC's securities counsel would explore legal remedies. Aron also said AMC would raise concerns with the SEC, though he did not announce a filed lawsuit or confirmation of an SEC investigation.
What Are Tokenized Stocks?
Tokenized stocks are blockchain-based assets that track or represent shares in publicly traded companies. According to CoinGecko, they generated $15.1 billion in spot trading volume during the first quarter of 2026. Robinhood describes its tokens as debt securities issued by Robinhood Assets (Jersey) Limited that provide exposure to share prices without ownership of underlying shares or rights against companies like AMC.
Robinhood's disclosures state that the tokens are not registered under U.S. securities laws and cannot be offered, sold, or delivered in the United States or to U.S. persons.
Legal Experts Weigh In
Legal counsel disagree on AMC's ability to stop the products. Ashley Ebersole, legal counsel for tx, a platform for tokenizing real-world assets, told Decrypt: "There's no obvious US securities law angle to pursue here," citing the tokens' offshore distribution and absence from Robinhood's U.S. app.
Ebersole identified trademark misuse and false association with AMC as the strongest potential angles for legal claims. He noted that Robinhood could defend itself by clearly identifying the products as tracking tokens without AMC's endorsement or by arguing fair use of the company's name.
Miami crypto lawyer Russell Klein said clear disclosures distinguishing tokens from shares could limit AMC's options. "If they make it clear with disclaimers and terms that it's not purporting to be the company's shares but is a derivative then they don't have any recourse other than legal threats and lobbying regulators," Klein told Decrypt.
Daniel Lasko, general counsel at Arcus, a decentralized exchange built in partnership with Robinhood, questioned whether publicly traded companies can prevent such products. He compared the arrangement to an investment manager including a company's stock in an ETF and suggested tokenized stocks could broaden access to U.S. markets for international investors who previously lacked it.
Previous Controversy
Robinhood introduced tokenized stock trading for European customers last summer. That July, OpenAI objected to tokens bearing its name, saying it had neither partnered with Robinhood nor approved an equity transfer. Robinhood CEO Tenev defended expansion of the offering despite that controversy.
