AMC Demands Tokenized Stock Removal; Robinhood Refuses to Yield

AMC, the largest movie theater chain globally, has demanded that Robinhood remove its tokenized stocks. The dispute has sparked significant backlash on social media. The tokens trade on Robinhood using AMC's stock price and branding, but purchasers do not receive actual AMC shares, which is why the company wants them taken down. Adam Aron, AMC's CEO, has voiced concerns that investors might confuse the products for genuine shares and believes the structure warrants regulatory attention.

Robinhood has declined to take down the tokens, with its stance effectively being 'Send the Lawyers.' Dan Gallagher, Robinhood's chief legal officer and a former SEC commissioner, made a public response.

We know a little something about the U.S. securities laws and will not “DECIST.” Send your lawyers and we’ll educate them. https://t.co/hz8dH2bz8G

— Dan Gallagher (@DanGallagherDC) September 4, 2026

Robinhood Takes a Hard Line on Tokenized Stocks

The dispute highlights the unusual legal territory surrounding stock tokens.

Robinhood's token products follow the price of listed shares, yet purchasers do not gain ownership of the actual shares. Instead, they acquire an offshore-issued debt instrument tied to the stock price. These instruments carry no voting rights and typically cannot be exchanged for the underlying equity.

Fintech lawyer Ariel Givner highlighted that gap, an issue that spans the $37 billion tokenized-assets market.

“The token isn’t the asset. It’s a representation of a claim,” Myles Harrison, Chief Product Officer at AMINA Bank, told BeInCrypto. “Those answers live in the record of ownership, not in the token itself.”

Investor Ross Gerber went further, labeling synthetic securities a Ponzi scheme and warning they could eventually threaten Robinhood.

Adam Aron has described the structure as 'contemptible' and stated his intention to bring it to the SEC's attention. Robinhood, however, has a key counterargument: these tokens are not available to U.S. investors.

CEASE AND DECIST in all caps was my attempt at humor. It was a cross between Desist (which means to stop) and De-cyst (which would mean to remove a cyst, something that causes pain and discomfort).

What you know about U.S. securities laws apparently is that you are happy to… https://t.co/MKNdSphG4y

— Adam Aron (@CEOAdam) September 4, 2026

As of now, no legal action has been initiated. The next step by Aron will determine if the dispute stays a corporate spat or evolves into a significant challenge to the limits of tokenized stocks.