AMC CEO slams Robinhood over tokenised shares

Adam Aron, CEO of cinema chain AMC Entertainment, has reacted furiously to an initiative by Robinhood that offers so-called Stock Tokens based on AMC shares. Aron says that the tokens have not been registered under US securities law, that AMC has no involvement in the initiative whatsoever, and that he is bringing in external legal advisers to investigate the matter.

In brief:

• Robinhood offers tokenised shares of AMC and more than 190 other companies through a British entity.
• AMC CEO Adam Aron calls the initiative unlawful and announces a legal investigation.
• The tokens are expressly not available to American investors and are not registered under the Securities Act.

Robinhood launches tokenised shares outside the US

Robinhood has set up a platform offering Stock Tokens through its British subsidiary Robinhood Assets (Jersey) Limited. These are tokenised versions of listed shares in more than 190 companies, including AMC Entertainment.

The tokens are explicitly intended only for investors outside the United States. Robinhood explicitly excludes American users, partly because the tokens are not registered under the US Securities Act of 1933. Restrictions also apply to Canada, the United Kingdom and Switzerland.

Aron: “How can this ever be legal?”

AMC CEO Adam Aron has reacted sharply to the news on X. He says AMC is in no way involved in this initiative and has not given its approval for it either.

Aron has announced that AMC is immediately bringing in external securities lawyers to examine the legal structure of the arrangement. He also questions the lawfulness of the setup, even though Robinhood is targeting the tokens exclusively at non-American investors.

This is not the first time tokenised shares have led to legal debate. Because such products have the characteristics of both securities and crypto assets, the question of which regulatory framework applies has not yet been answered consistently everywhere. Whether AMC’s legal investigation will lead to concrete steps remains unclear.