AMC CEO Slams Robinhood's Tokenized Stocks as 'Contemptible' and 'Vile'
Adam Aron, CEO of AMC Theatres, has publicly criticized Robinhood's tokenized stocks, calling them 'contemptible' and 'vile'. He claims that the US Securities and Exchange Commission (SEC) is failing to intervene in a situation where companies are bypassing securities laws under the guise of wrapped stocks. Aron argues that Robinhood's actions undermine efforts to protect investors and create an unfair playing field by setting up shop in jurisdictions outside the US.
Robinhood's tokenized Stock Tokens offer investors economic exposure to underlying securities, including US shares and exchange-traded funds (ETFs), but do not grant them legal or beneficial rights. The company issues these tokens as standard ERC-20 tokens, deriving their value from Chainlink's live Price Feeds.
The AMC CEO believes that the model deprives shareholders of various perks guaranteed under regulated markets, such as voting rights and formal corporate disclosures. He demands that Robinhood voluntarily cease and desist from trading AMC stock tokens or face legal action. Aron also questions the US SEC for allowing such a practice to occur.
Robinhood's RWA Tokens have surpassed $161.88 million in value, with AMC contributing around 4.69% of the total asset value at $7.6 million. Dan Gallagher, former SEC commissioner and now Robinhood's Chief Legal Officer, has defended the legality of Robinhood's Stock Tokens.