AMC chief criticizes Robinhood’s tokenized stock plan

AMC's CEO Adam Aron has harshly criticized Robinhood's tokenized stock offerings, claiming they are unregulated in the US and potentially subject to restrictions in multiple other jurisdictions. Aron, who is not affiliated with Robinhood, plans to request an investigation from an external securities counsel regarding the matter.

The CEO stated that Robinhood's stock tokens, which provide economic exposure to AMC shares, are "outrageous" offerings with no affiliation to AMC and are not registered under US securities laws. Aron added that these tokens may not be offered to US investors and are subject to restrictions in several jurisdictions, including Canada, Switzerland, and the UK.

This criticism follows a series of regulatory concerns surrounding tokenized stocks, which are blockchain-based shares tracking traditional company shares. Recently, some crypto exchanges cancelled their SpaceX IPO allocations due to tokenized stock issues, with several pointing to xStocks' inability to deliver underlying assets as the cause.

Robinhood co-founder and CEO Vlad Tenev responded to the criticism on X, asking Aron to share his specific concerns. The platform has not issued a public statement regarding the matter.