Synthetic tokenized stocks are bad for American investors
AMC CEO Adam Aron criticized Robinhood for offering tokenized AMC stock without consent. The products are offshore debt securities that track share prices but provide no ownership or shareholder rights, with secondary trading occurring outside U.S. exchanges. The piece argues these synthetic tokens divert trading activity and investor demand from U.S. markets. It says an SEC innovation exemption announced September 17 excludes synthetic tokens and requires qualifying products to confer traditional shareholder rights and give companies notice and a chance to object. As an alternative, it endorses DTCC’s planned tokenization service, where tokens would represent shares held in the existing securities system, extending direct ownership and potentially widening access to U.S. equities.
