AMC Entertainment’s stock (AMC.US) surged by up to 21% after CEO Adam Aron criticized Robinhood’s offering of tokenized AMC shares, calling them “contemptible” and demanded they cease operations. Aron clarified that AMC isn’t involved with the product and plans to consult with legal experts, including the SEC.
In response, Robinhood CEO Vlad Tenev questioned the concerns, with Robinhood’s CLO, Dan Gallagher, asserting they are not going to stop the program. The tokens, created by Robinhood Assets in Jersey, are not registered under U.S. securities laws and cannot be sold to U.S. citizens. Currently, Robinhood lists 194 tokenized U.S. stocks and ETFs, claiming over $3 billion in trading volume tied to these products.
However, the tokens do not confer ownership, voting rights, or any claims to the underlying companies. This incident highlights the ongoing tension between emerging tokenization trends and traditional corporate governance.
