AMC CEO threatens legal action against Robinhood over tokenized stock products

AMC CEO Adam Aron demands that Robinhood halt trading of a blockchain-based token tracking AMC stock, calling the product a "quasi-fake market" that could disrupt capital raising and mislead investors. Robinhood Chief Legal Officer Dan Gallagher rejects the cease-and-desist demand, asserting the brokerage's compliance with securities laws. The dispute highlights growing tensions as the tokenized stock market reaches $3.6 billion.

Robinhood tokenized stock products

• ▪Robinhood Markets Inc. offers over 190 blockchain-based Stock Tokens tied to U.S. companies and ETFs to eligible investors in more than 120 countries.
• ▪Robinhood Markets Inc.'s Stock Tokens are tokenized debt securities issued by Robinhood Assets (Jersey) Limited that provide economic exposure to underlying stocks without granting legal or beneficial rights, such as voting rights.

AMC cease-and-desist demand

• ▪AMC Entertainment Holdings Inc. Chief Executive Officer Adam Aron plans to raise concerns regarding Robinhood Markets Inc.'s tokenized stock products with the U.S. Securities and Exchange Commission.
• ▪AMC Entertainment Holdings Inc. Chief Executive Officer Adam Aron publicly demanded on September 3 and 4, 2026, that Robinhood Markets Inc. cease trading a blockchain token bearing the theater chain's name.
• ▪AMC Entertainment Holdings Inc. Chief Executive Officer Adam Aron threatened legal action and stated that AMC's outside securities counsel would investigate the Robinhood Markets Inc. token.

Securities law compliance concerns

• ▪In January 2026, the staff of the U.S. Securities and Exchange Commission explicitly recognized that securities can be tokenized by third parties unaffiliated with the companies issuing the underlying securities.
• ▪AMC Entertainment Holdings Inc. Chief Executive Officer Adam Aron argued that Robinhood Markets Inc.'s synthetic equity market decouples token ownership from a company's ability to control its capital raising efforts.
• ▪AMC Entertainment Holdings Inc. Chief Executive Officer Adam Aron questioned whether Robinhood Markets Inc.'s offshore structure in Jersey complies with U.S. securities laws.

Robinhood executive responses

• ▪Robinhood Markets Inc. Chief Legal Officer Dan Gallagher rejected AMC Entertainment Holdings Inc.'s cease-and-desist demand, stating that the brokerage knows U.S. securities laws and will not stop trading the tokens.
• ▪Robinhood Markets Inc. Chief Executive Officer Vlad Tenev publicly supported the brokerage's tokenized offerings, posting on X that the company stands behind its Stock Tokens.

Stock tokenization market growth

• ▪Citigroup projects that the tokenized securities market could grow to $5.5 trillion by 2030, which includes $2.7 trillion of equities.
• ▪The overall tokenized stock market has grown to $3.6 billion, according to a CoinDesk Research report.

Debatable claims

• ▪Companies should have the right to block third-party tokenization of their shares
• ▪Synthetic stock tokens pose unacceptable risks to retail investors
• ▪Synthetic stock tokens undermine the capital-raising efforts of public companies

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