AMC Entertainment chief executive Adam Aron said this week he was prepared to file a complaint with the U.S. Securities and Exchange Commission over tokenized versions of the cinema chain’s shares offered on Robinhood’s trading platform.
Aron called the practice “inexcusable” and “vile” in public remarks, arguing that the tokens misrepresent ownership of AMC stock. The dispute centres on financial instruments that track the price of a company’s shares without conferring the legal rights of direct equity ownership.
Robinhood has been expanding into tokenized trading, allowing users to gain exposure to U.S. equities through blockchain-based tokens. The company markets the products to investors outside the United States, where such instruments face different regulatory treatment than in the domestic market.
AMC shares rose about 6% following Aron’s comments, while Robinhood’s stock slipped. The divergent moves reflected investor attention to the standoff between the two companies, both of which drew retail-trader enthusiasm during the 2021 meme-stock rallies.
Tokenization allows an issuer to create a digital representation of an asset that can be traded on distributed-ledger systems. Supporters say the technology lowers costs and widens access to markets. Critics, including several company executives, question whether token holders understand that they may not hold the underlying shares.
The friction arrives as Robinhood continues to broaden its product range beyond commission-free equity trading. The brokerage joined the S&P 500 index in September, a step that placed it among the largest listed U.S. companies.
Aron has long courted AMC’s retail shareholder base, whom the company refers to as its “Apes,” and has used social media to communicate directly with investors. His objection frames the token products as a threat to those shareholders’ interests.
Neither the SEC nor Robinhood has confirmed any formal proceeding tied to Aron’s threat. The regulator has previously signalled scrutiny of tokenized securities, though its position on specific products remains under review.
Whether Aron proceeds with a filing, and how regulators respond, will determine the next phase of the dispute. No date has been set for any SEC submission.