Robinhood CEO Responds to AMC Criticism, Says Public Companies Cannot Control Financial Products

Robinhood CEO Vlad Tenev responded to AMC CEO Adam Aron’s criticism of the stock token business, stating that once a company goes public, its stock becomes a transferable asset, allowing other financial institutions to create related financial products without the issuer's permission. Tenev pointed out that public companies have the rights and obligations to control their own stocks but cannot control securities issued by other companies that reference their stocks. The Robinhood stock tokens are issued by an independent entity and are backed by the underlying stocks, thus not requiring the public company's consent. Tenev also acknowledged that stock token holders do not have voting rights in the underlying company, as these tokens are designed as debt securities backed by the underlying stocks. Regarding how Robinhood will exercise voting rights for the underlying stocks, Tenev stated that the company has not yet announced any related plans.

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