Robinhood CEO Vlad Tenev Rebuts AMC Over Tokenized Shares Dispute
- Robinhood CEO Vlad Tenev drew a hard line on Wednesday, arguing that public companies should not hold veto power over third-party securities referencing their stock.
- Aron took to social media platform X to state that AMC had no connection to Robinhood's tokenized product and did not condone it.
- According to Tenev, public companies maintain oversight of the actual stock they issue, but that authority does not extend to independent financial products created by other firms.
Robinhood CEO Vlad Tenev drew a hard line on Wednesday, arguing that public companies should not hold veto power over third-party securities referencing their stock. Appearing on CNBC’s Squawk Box, Tenev pushed back directly against AMC Entertainment CEO Adam Aron. Last week, Aron accused Robinhood of creating a fake market for AMC shares and threatened to involve the U.S. Securities and Exchange Commission. The interview marked Tenev’s first public appearance since the dispute erupted.
Tenev Defends Robinhood Tokenized Shares on CNBC
The AMC Cease-and-Desist Demand
Aron took to social media platform X to state that AMC had no connection to Robinhood’s tokenized product and did not condone it. Aron called the practice contemptible and outrageous, subsequently demanding that Robinhood cease and desist trading tokens tied to AMC.
Corporate Control Versus Independent Financial Products
According to Tenev, public companies maintain oversight of the actual stock they issue, but that authority does not extend to independent financial products created by other firms.
Issuers should have control and do have control over the rights and obligations of the stock that they issue, but that doesn’t mean they control everything about it,
Tenev said during the interview. In particular, they don’t control other companies issuing their own securities that reference those shares.
The Debate Over Issuer Consent
The disagreement centers on whether outside entities require explicit permission from a publicly traded company to issue tokenized versions of its shares. Tenev argued that issuer consent depends heavily on the specific activity involved, maintaining that products like Robinhood’s stock tokens should not automatically require sign-off from the underlying company.
Issuer consent depends on what exactly you’re doing,
Tenev stated on CNBC. And in the case of Robinhood stock tokens […] those should not automatically require issuer consent.