AMC CEO Adam Aron Slams Robinhood Stock Token, Calls for Legal Review

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AMC CEO Adam Aron Slams Robinhood Stock Token, Calls for Legal Review

Highlights:

  • AMC CEO Adam Aron criticized Robinhood’s AMC Stock Token and said the company has no connection.
  • Robinhood says Stock Tokens provide economic exposure but do not give holders shareholder ownership or voting rights.
  • AMC will ask outside securities counsel to review the product, while Robinhood defends its token structure.

AMC Entertainment CEO Adam Aron has strongly criticized Robinhood’s Stock Token linked to AMC. He said the theater chain has no connection to the product and does not support it. Aron also said AMC will ask outside securities lawyers to review the matter.

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Aron raised the issue in a September 4 post on X. He said Robinhood was “apparently” behind an effort involving tokenized real-world assets, including Stock Tokens tied to AMC and more than 190 other companies. He also questioned how the product could operate without being registered under U.S. securities laws. “We have no connection to this at all, and do not condone it in any way,” Aron wrote. He added that AMC would immediately ask its outside securities counsel to examine the issue.

Robinhood Stock Tokens Do Not Give Investors AMC Shares

Robinhood’s documentation provides an important distinction between Stock Tokens and regular company shares. The company describes Stock Tokens as tokenized debt securities issued by Robinhood Assets (Jersey) Limited. They are designed to give investors economic exposure to underlying stocks and ETFs. However, holders do not receive legal or beneficial ownership rights in the companies linked to those assets.

In other words, owning an AMC Stock Token is different from owning AMC shares listed on the New York Stock Exchange. Stock Token holders do not become AMC shareholders through the token itself. Robinhood also states that its Stock Tokens are not registered under U.S. securities laws. According to the company’s disclosures, they cannot be offered, sold or delivered in the United States or to U.S. persons. Robinhood Assets (Jersey) Limited serves as the issuer.

The tokens use the ERC-20 standard and can be held or transferred onchain. Robinhood also says developers can use them in trading, lending and other blockchain-based applications.

Aron Pushes Back Over AMC’s Name and Stock Token

The dispute continued after Robinhood CEO Vlad Tenev responded to Aron by asking, “What’s the concern?” Aron later shared a detailed post from another X user, saying it closely reflected his own concerns about Robinhood’s Stock Tokens.

The post argued that Robinhood used AMC’s name, ticker and stock price for a Jersey-issued product without AMC’s involvement. It stressed that the token does not give holders AMC shares, voting rights, ownership or a direct claim on the company. It also raised concerns about the token trading 24/7 onchain, being used in DeFi pools or as collateral, and potentially creating separate AMC-linked market exposure away from the NYSE.

Aron has not announced legal action so far. However, he said AMC will ask outside securities counsel to review the product and determine whether the structure raises legal or regulatory concerns.

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