Robinhood defies AMC as fight tests issuer control over stock tokens
Robinhood has turned down AMC Entertainment‘s request to stop trading in blockchain-linked tokens related to the movie theater company’s stock. This has raised a larger issue: does a publicly traded company have any influence over a third partys tokenization of its stock? The controversy between Robinhood and AMC on X matters to more than one company. It also applies to publicly traded companies whose shares may be tokenized without their knowledge, as well as investors buying products tracking shares without becoming shareholders. By refusing to stop trading the tokens, Robinhood is pushing the limits of how much third-party tokenized shares can accomplish under current securities law. The controversy also raises concerns on ownership, control of the issuing company, fragmented liquidity, and regulatory oversight. “Send your lawyers and well educate them” Dan Gallagher, who is the head of legal, compliance, and corporate affairs at Robinhood, and a previous SEC commissioner, responded to AMC CEO Adam Aron. Gallagher mentioned on X that Robinhood knows “a little something about the U.S. securities laws and will not ‘DECIST,’” mocking Arons misspelling in his post. He added “send your lawyers and well educate them.” CEO of Robinhood Vlad Tenev re-shared the message with a caption, “We stand behind Stock Tokens.” Arons









