Robinhood CEO responds to AMC criticism: Public companies cannot control tokenization of their stocks

Odaily News - Robinhood CEO Vlad Tenev has responded directly to AMC's criticism in a recent interview, stating that once a public company's stock begins trading publicly, other financial institutions should have the right to issue financial products related to those stocks without needing prior permission from the stock issuer.

Vlad Tenev said that publicly traded stocks are essentially transferable property held by shareholders, so other financial institutions should be able to launch financial products referencing the relevant stocks without obtaining permission from the issuer. He specifically noted that Robinhood's stock tokens are issued by independent entities and backed by the corresponding underlying stocks, so prior consent from the listed company involved should not be automatically required.

AMC CEO Adam Aron previously harshly criticized Robinhood's tokenization of AMC stock, arguing that the move bypasses the issuing company and undermines the traditional relationship between the company and its shareholders, and that stock token holders do not have voting rights in the underlying stock. As for how Robinhood will exercise the voting rights corresponding to the underlying stock, Adam Aron said the company has not yet disclosed a specific plan. (CNBC)