AMC Entertainment CEO Adam Aron publicly criticized Robinhood for issuing tokens that track the company's share price without authorization. Aron stated that AMC has no connection to these financial instruments and does not support their existence. He has instructed external legal counsel to investigate the matter immediately.
Robinhood's documentation defines these stock tokens as debt securities issued by Robinhood Assets (Jersey) Limited. These tokens provide economic exposure to share prices but grant holders no legal rights against the underlying companies. The issuer notes that the Jersey-based entity is not regulated and that its consents do not imply supervision.
The tokens are not registered under U.S. securities laws and are restricted from being offered to U.S. persons, as well as residents of Canada, the U.K., and Switzerland. The base prospectus was approved by the Financial Market Authority of Liechtenstein. Robinhood's program currently covers more than 190 companies.
Previously, Robinhood airdropped tokens tracking OpenAI and SpaceX to European users. Both companies confirmed they had no partnership with Robinhood and did not endorse the products. SEC Commissioner Hester Peirce has previously warned that blockchain technology does not change the fundamental nature of underlying assets.