Robinhood Refuses to Halt Token Trading Amid SEC Pressure

Robinhood has refused to comply with AMC CEO Adam Aron's demand to halt trading of tokenized debt securities linked to AMC stock. The tokens, which are not available to US investors and are issued through a Robinhood entity in Jersey, carry no shareholder rights.

Aron threatened legal action and an SEC complaint if the brokerage did not comply with his demand. However, Robinhood's Chief Legal Officer Dan Gallagher, a former SEC commissioner, rejected the demand flatly, saying 'Send your lawyers and we'll educate them.'

The tokenized stock market sits at roughly $2.91 billion and is growing fast, raising pressure for a US regulatory framework.