AMC CEO Adam Aron publicly opposes Robinhood's stock token products, stating that AMC has no association with these tokens and has not granted any authorization for them. The focus of the dispute is that such products do not represent actual stock ownership, but rather are merely an economic exposure to stock price performance.
AMC Requests Lawyers to Get Involved
Aron described such practices as "despicable" and questioned their legality. He stated that the relevant tokens were not registered in accordance with U.S. securities laws, and AMC has already instructed external securities lawyers to immediately begin an investigation. According to him, Robinhood's plan covers more than 190 companies.
The product documents of Robinhood indicate that the so-called "stock tokens" are not actual shares of the corresponding company, but rather tokenized debt securities issued by Robinhood Assets ( Jersey ) Limited. Holders can only benefit from fluctuations in stock prices and do not possess any legal rights or benefits to the underlying stocks.
The holder does not enjoy shareholder rights.
This means that users holding tokens related to AMC cannot claim to own shares of AMC based on this, nor can they assert any shareholder rights towards AMC. The description of Robinhood also states that holders do not have any direct claims against the company that issued those shares.
- The issuing entity is Robinhood Jersey entity.
- The nature of the product is tokenized debt securities.
- Earnings are anchored to the stock price, not corresponding to actual equity.
Robinhood also disclosed that these tokens are not registered in the United States and cannot be offered or delivered to U.S. persons. In addition to the United States, there are additional restrictions in Canada, the United Kingdom, and Switzerland. Their base prospectus has been approved by the Liechtenstein Financial Market Authority in accordance with EU regulations.
OpenAI has been publicly split before.
This is not the first time that Robinhood has sparked controversy over tokenized stock products. Last year, the company conducted airdrops of tokens tracking OpenAI and SpaceX to European users. Subsequently, OpenAI stated that it had not collaborated with Robinhood and was not involved in or endorsed such products.
OpenAI At that time, it was emphasized that any OpenAI equity transfer required company approval, which was not granted. Robinhood The Chief Executive Officer Vlad Tenev referred to the launch of this product as a milestone and indicated that in the future, thousands of unlisted companies might adopt a similar model.
SEC Committee member issued a reminder
A few days after the launch of the aforementioned product, U.S. Securities and Exchange Commission commissioner Hester Peirce stated that blockchain would not “magically change” the nature of the underlying assets. This statement was interpreted by the market as a direct reminder regarding the tokenization of stocks.
