Foreign media: Robinhood rejected AMC's request to stop trading its stock tokens, and responded that it is willing for lawyers to have a direct conversation. The dispute revolves around whether these products may mislead buyers, whether they constitute trademark infringement, and how they should be legally classified.

Robinhood responds to AMC

Robinhood, the Chief Legal, Compliance, and Corporate Affairs Officer, stated in a response on X that AMC could "send lawyers over." He also mentioned that the company is familiar with U.S. securities laws and would not accept the other party's request to "stop and terminate" the transaction.

Aron accuses Robinhood of marketing a security that resembles AMC stock without complying with U.S. securities laws. He also questions the use of Jersey Island as the issuing entity for these tokens and believes that such products will weaken shareholders' rights and the company's control over financing.

The legal dispute focuses on trademarks and misleading practices.

The interviewed lawyer, Ashley Ebersole, believes that such products may not necessarily involve obvious issues under U.S. securities law, as they are primarily issued overseas and do not appear in the U.S. applications of Robinhood. He pointed out that if AMC wishes to proceed with litigation, it is more likely to focus on trademark misuse or "misleading associations."

Ebersole said that the key issue lies in whether the platform packages the tokens as stocks themselves or implies that they enjoy stock rights. He also stated that if the product is clearly labeled as a tracking token and the use of the AMC brand is restricted, Robinhood may still raise objections.

Tokenized stock business continues to expand

Arcus The Chief Legal Advisor, Daniel Lasko, also stated that listed companies usually do not have much control over how third parties package their stocks as financial products. He compared such arrangements to holding shares in ETF and believed that the outside world still does not fully understand tokenized stocks.

Lasko also refuted AMC's claim that such products would "damage the US capital market," stating that they might instead attract international investors who previously had no access to the US market. Robinhood launched tokenized stock trading for European clients last summer, and OpenAI also raised objections at that time regarding the tokens that used their name.