AMC and Robinhood Clash Over Tokenized Stock Product Approval

AMC Entertainment ($AMC) and Robinhood ($HOOD) have clashed over whether the issuer of a tokenized stock product linked to AMC shares has obtained necessary approvals. AMC asserts it has no relation to the product and did not approve it. According to CoinDesk, Robinhood CEO Vlad Tenev stated in a CNBC interview that public companies cannot control all third-party financial products referencing their stock. Tenev explained that if a product alters shareholders' rights or company obligations, issuer involvement is required; however, for standalone financial products referencing underlying shares, approval is not automatic. Robinhood's guidance states the tokenized stock is a debt security issued by Robinhood Assets (Delaware), fully collateralized 1:1 against the underlying stock. However, token holders do not receive legal or practical rights to the underlying stock issuer or voting rights, and the product is unregistered under U.S. securities laws.