[**'Send Your Lawyers': Robinhood Isn't Backing Down From AMC Over Stock Tokens**](https://decrypt.co/377461/send-your-lawyers-robinhood-not-backing-down-amc?utm_source=telegram&utm_medium=social&utm_campaign=smt) Lawyers question AMC’s grounds for a securities-law challenge, but say the tokens’ br
Regulation & Gov ·
Robinhood has rejected AMC Entertainment's demand to halt trading in tokens tracking its stock price, with the brokerage's chief legal officer publicly challenging the theater chain to pursue legal action. Dan Gallagher, Robinhood's top lawyer and a former SEC commissioner, responded to AMC CEO Adam Aron's cease-and-desist demand by writing "Send your lawyers and we'll educate them" on social media. Aron had accused Robinhood of marketing an unregistered security and argued the tokens undermine shareholder rights and corporate control over capital raising.
Legal experts quoted in reporting on the dispute noted that AMC faces a narrow path to challenge the tokens under U.S. securities law, given their offshore issuance and exclusion from Robinhood's U.S. app. Instead, potential claims could center on trademark misuse or whether the tokens create a misleading association with AMC. Robinhood's product disclosures identify the tokens as debt securities issued by an offshore entity that provide price exposure without actual share ownership or company shareholder rights.
What remains unresolved is whether AMC will pursue formal legal action or regulatory complaints. The company has indicated it may raise concerns with the SEC, but has not announced a filed lawsuit or confirmed an SEC investigation. Lawyers suggested that clear product disclaimers and limited branding use by Robinhood could substantially weaken AMC's legal position.