Robinhood CEO Responds to AMC's Criticism: Publicly Listed Companies Cannot Control Financial Products Created Around Their Stocks
53 minutes ago
According to CNBC, Robinhood CEO Vlad Tenev responded to AMC CEO Adam Aron’s criticism of the firm’s 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 those shares without obtaining the issuer’s permission. Tenev noted that public companies have the right to control their own stock issuance rights and obligations, but cannot prevent other firms from issuing securities that reference their stocks. Robinhood’s stock tokens are issued by independent entities and backed by underlying stocks, so they should not automatically require the public company’s consent. Tenev also acknowledged that stock token holders do not hold voting rights in the underlying company, as these tokens are designed as debt securities backed by the underlying stocks. When asked how Robinhood will exercise the voting rights attached to the underlying stocks, he said the company has not yet announced relevant plans.
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