Robinhood CEO Defends AMC Stock Tokens

Robinhood CEO Vlad Tenev has defended the trading platform’s stock token model after AMC Entertainment CEO Adam Aron criticized tokens linked to AMC shares and threatened to involve the U.S. Securities and Exchange Commission (SEC).

Speaking on CNBC’s “Squawk Box” on Wednesday, Tenev argued that publicly traded companies cannot control every financial instrument created with reference to their shares. His comments mark his first public response since the dispute between Robinhood and AMC erupted last week.

Tenev said companies retain control over the rights and obligations associated with the stock they issue, but that authority does not necessarily extend to securities issued by other companies that reference those shares. He added that Robinhood stock tokens should not automatically require consent from the company whose shares underpin the product.

Aron previously said AMC had no involvement with Robinhood’s tokenized AMC product and did not approve of its creation. The AMC CEO described the practice as “contemptible” and “outrageous” before demanding that Robinhood cease trading tokens tied to AMC shares.

Tenev also provided additional details about how Robinhood stock tokens operate. According to the CEO, each token is backed 1:1 by an underlying share held as collateral, while the token itself is structured as a debt security. Token holders can receive dividends associated with the underlying stock but do not receive shareholder voting rights.

When asked whether Robinhood intends to exercise voting rights on shares held as collateral, Tenev said the company has not announced a policy.

The Robinhood-AMC dispute has intensified debate around tokenized stocks and synthetic financial products. Archax CEO Graham Rodford highlighted the difference between placing an actual share on a blockchain and creating a separate security designed to track its value.

Securitize CEO Carlos Domingo also raised concerns about pricing. He cited an AMC-linked token trading pair that reportedly traded at roughly 60 times AMC’s reference share price, demonstrating how thin token markets can potentially diverge sharply from the value of their underlying stocks.