Bitfinex Securities has entered the tokenized stocks debate, arguing that the controversy extends beyond issuer consent to encompass investor rights, transfer controls, and market oversight. According to crypto.news, Bitfinex Head of Operations Jesse Knutson told crypto.news that Robinhood CEO Vlad Tenev was 'directionally correct' to reject a blanket issuer veto, but emphasized that the debate should focus on what each token represents and who can access it. Knutson stated that 'the debate shouldn't really be 'does the issuer get a veto? It should be: what exactly does the token represent and who can access it?' His comments come as AMC Entertainment CEO Adam Aron rejected an AMC-linked token because the theater chain had not approved or participated in its creation, highlighting the fundamental questions about token structure and ownership rights.
Knutson drew particular concern around private company tokens that may leave ordinary token buyers with less information than direct investors receive. As reported by crypto.news, private shares lack the continuous disclosure, public filings and regular price discovery associated with exchange-listed companies. The concern was previously raised by OpenAI in July 2025 when Robinhood offered token exposure linked to OpenAI and SpaceX, with OpenAI stating the tokens were 'not its equity' and that the company had neither partnered with Robinhood nor endorsed the product. Robinhood explained that its OpenAI exposure came through a special-purpose vehicle holding an economic interest linked to the private company, with buyers receiving exposure through Robinhood's structure rather than shares issued directly by OpenAI. This information gap represents a significant concern for investors in tokenized private securities.
Beyond ownership terms, Knutson identified transfer controls as a central concern for tokenized securities, stating that 'listed companies obviously don't want tokenized versions of their stocks ending up in sanctioned or prohibited jurisdictions.' As reported by crypto.news, a token can move between compatible blockchain addresses once transfers are enabled, creating different distribution routes from conventional brokerage accounts. Compliance may depend on smart-contract restrictions, approved-wallet lists, identity checks and redemption rules applied by the token issuer. Currently, Robinhood bars U.S. persons from acquiring Stock Tokens issued by its Jersey unit, with documentation stating the products have not been registered under the U.S. Securities Act and cannot be offered to American investors. This restriction means U.S. customers cannot use Robinhood's blockchain tokens as a substitute for buying the referenced shares through domestic brokerage accounts.
The public dispute has generated significant market interest, with AMC's stock jumping as much as 15% in premarket trading when the public row first broke out. As reported by CNBC, traders have been piling into both the shares and related tokens, reflecting the market's reaction to the controversy. The surge in trading activity demonstrates the market's interest in the tokenized stock products and the regulatory questions they raise. The debate also covers price formation concerns, with Securitize CEO Carlos Domingo highlighting that an AMC token traded at 60 times AMC's share price, underscoring the risks of detachment from underlying stocks. HOOD stock gained 1.3% in morning trade while AMC stock dipped around 0.4% amid weakness in the broader market. On Stocktwits, retail sentiment around HOOD trended in 'bullish' territory over the past day, while sentiment around AMC improved to 'bullish' from the 'neutral' zone.
The legal dispute could mark a significant regulatory test for the tokenized stock market, with industry executives offering mixed perspectives on the controversy. The Federal Reserve has recognized that tokenized securities can use different legal models, with its regulatory guidance distinguishing instruments representing direct ownership from separate securities referencing underlying assets. Backpack's Armani Ferrante acknowledged that some of AMC's concerns about capital formation had substance, arguing that demand for a token does not necessarily translate into the same demand for the underlying stock. Meanwhile, Archax's Graham Rodford distinguished between putting an actual share on a blockchain and issuing a separate financial instrument that tracks the share, stating 'A tokenized stock should mean the stock, tokenized.' The disagreement comes as financial companies and digital-asset platforms explore different ways to bring traditional securities onto blockchains, with Coinbase introducing products on Base in August that represent beneficial interests in shares held through segregated custody, including tokenized versions of Nvidia, Meta, Apple, and Alphabet. Until either AMC's legal team or the SEC takes public action, Robinhood's AMC tokens remain available to eligible international users, and Knutson's comments about 'the market is likely to have both models, but investors need to understand which one they're buying' reflect the evolving competitive landscape in tokenized securities.
