AMC CEO Blasts Robinhood Stock Tokens, Questions If They’re Legal
Key Insights:
- AMC CEO Adam Aron says AMC has no connection to Robinhood stock tokens.
- Robinhood stock tokens remain unavailable to U.S. persons under its disclosures.
- HOOD stock jumped 16.57% to $124.72 on Sept. 3 before easing premarket.
Robinhood stock token plans drew criticism from AMC Entertainment CEO Adam Aron after AMC appeared among tokenized equities. Aron said AMC has no connection to the products and does not support their use. He questioned whether the structure complies with securities law and said outside counsel would review it.
Aron cited Robinhood documents stating that Stock Tokens are not registered under U.S. securities laws. Those documents also say the tokens cannot be offered or sold to U.S. persons. Robinhood stock-related products therefore remain limited to eligible users outside the United States.
AMC CEO Questions Robinhood Stock Token Structure
Robinhood stock tokens are issued by Robinhood Assets Jersey Limited, according to the company’s disclosure. The Jersey company is registered under number 162428 and operates from St. Helier. Its documents state the tokens are not registered under the Securities Act of 1933. They also cannot be delivered within the United States or for the benefit of U.S. persons.
… Continue reading the full article at the original source below.
