Robinhood CEO responds to AMC's accusations: Public companies cannot control the financial products created around their stocks

According to CNBC, Robinhood CEO Vlad Tenev responded to AMC CEO Adam Aron's criticism of the stock token business, stating that after a company goes public, its stocks will 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 publicly traded companies have the right to control their own rights and obligations regarding the issuance of stocks, but cannot control other companies issuing securities that reference their stocks. Robinhood's stock tokens are issued by independent entities and are backed by the underlying stocks, so obtaining the consent of the publicly traded company should not be automatically required.

Tenev also acknowledged that holders of stock tokens do not have voting rights in the underlying company. These tokens are designed as debt securities supported by the underlying stocks. As for how Robinhood will exercise the voting rights associated with the underlying stocks, the company has stated that it has not announced any related plans.