Robinhood CEO Responds to AMC Criticism: Public Companies Cannot Control Tokenization of Their Stocks

Odaily News: Robinhood CEO Vlad Tenev responded to AMC's criticism in a recent interview, stating that once a public company's stock is publicly traded, other financial institutions should have the right to issue financial products based on those stocks without prior permission from the issuing company.

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 such 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 they should not automatically require prior consent from the relevant public company.

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