Robinhood CEO Responds to AMC's Criticism: Public Companies Cannot Control Financial Products Created Around Their Stocks

BlockBeats News, September 9 - According to CNBC, Robinhood CEO Vlad Tenev responded to criticism from AMC CEO Adam Aron regarding the stock token business, stating that after a company goes public, its shares become transferable property, and other financial institutions should be able to create financial products referencing the relevant stocks without needing the issuer's permission.

Tenev stated that listed companies have the right to control the rights and obligations of their own issued shares, but cannot control other companies issuing securities that reference their stocks. Robinhood stock tokens are issued by independent entities and backed by the underlying shares, and therefore should not automatically require consent from the listed company.

Tenev also acknowledged that holders of stock tokens do not enjoy voting rights in the underlying company. These tokens are designed as debt securities backed by the underlying shares. As for how Robinhood will exercise the voting rights attached to the underlying shares, he noted that the company has not yet announced related plans.