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A CoinDesk opinion column published Oct. 1 argues that synthetic tokens tracking U.S. stocks can divert trading away from U.S. markets and give buyers no ownership or shareholder rights. It says the SEC’s Sept. 17 innovation exemption excludes these products, while allowing qualifying tokens that represent real shares and preserve traditional rights.
A CoinDesk opinion column published Oct. 1 argues that synthetic tokens tracking U.S. stocks can shortchange American investors because they do not confer ownership of the underlying shares and may send much of their trading offshore. The column points to the SEC’s Sept. 17 innovation exemption, which it says excludes synthetic tokens and requires qualifying tokenized securities to provide the rights of traditional shares.
The column describes a dispute between AMC chief executive Adam Aron and Robinhood chief executive Vlad Tenev over Robinhood’s tokenized AMC product. Aron said Robinhood tokenized AMC stock without the company’s consent and called the product “vile.” Tenev responded that consent was not required and that Robinhood was addressing international demand for exposure to U.S. equities. Those statements are the executives’ positions, not a resolution of the dispute.
According to the column, the products at issue are debt securities issued by a Robinhood offshore subsidiary. They track a stock’s price but do not give holders ownership of the underlying shares. The column says the issuer initially buys shares as collateral, after which token holders can trade with each other offshore, without those trades reaching the exchanges where the underlying company shares are traded.
The author argues this structure can separate investor demand for a token from demand for the company’s actual stock. The piece cites nearly 200 U.S. companies already tokenized in this way and says Citi projects the market could reach $2.7 trillion by 2030. The column does not provide further detail on the projection’s assumptions or explain how much trading activity currently occurs in these products.
Where Token Trades Reach U.S. Markets
The central concern is whether a tokenized product gives investors a claim on an actual share or only tracks its price. If trading occurs between token holders offshore, the column argues, that activity may not deepen trading in the U.S.-listed shares or direct additional capital to the companies themselves. This distinction matters to investors seeking shareholder rights and to companies that rely on U.S. markets to raise capital and trade their shares.
The column also makes a broader case about access. It says millions of investors outside the United States may have limited or unaffordable routes to buy U.S. equities directly. Tokenization could widen that access, but the author argues that the structure determines who benefits: synthetic products may channel trading and fees to offshore issuers, while tokens representing real shares could connect investors to U.S. markets. These are the author’s arguments about likely effects, not reported measurements of current market impact.
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SEC Rules Draw a Line on Ownership
The SEC’s Sept. 17 innovation exemption is presented in the column as a regulatory boundary for blockchain-based securities trading. The author says the exemption excludes synthetic tokens and applies to tokens that represent real ownership. It also says issuers must give holders the same rights and privileges as traditional securities, including dividends and voting, and that companies must receive notice and an opportunity to object before a third party tokenizes their shares.
As an alternative, the column describes a digital-twin model tied to securities held at the Depository Trust Company, a central custodian in U.S. securities markets. Under the approach, a token and a traditional security would be two forms of the same asset, with the share remaining in the national clearing and settlement system. The column says DTCC plans to launch a tokenization service in 2026. It does not establish that the service is already live or detail which tokens or venues will qualify.
““vile””
— Adam Aron, AMC chief executive, as quoted in the CoinDesk column
offshore cryptocurrency securities
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Open Questions on Scope and Impact
The source is an opinion column, and its conclusion that synthetic tokens are bad for American investors is the author’s assessment. The material does not quantify how much trading in these products bypasses U.S. exchanges, how many investors hold them, or whether the structure has measurably affected the share prices or financing costs of the companies represented.
It also does not include the full text of the SEC exemption, identify all products covered by the rules, or provide responses from Robinhood, the SEC, or DTCC beyond the statements attributed in the column. The status and timetable of DTCC’s planned service, and the extent to which international investors will use qualifying tokens, remain unclear from the material.
shareholder rights in tokenized stocks
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Implementation Will Test the Model
The next developments to watch are how the SEC’s exemption is applied in practice, whether token issuers and trading venues meet its stated ownership and shareholder-rights conditions, and whether companies exercise the notice and objection rights described by the column. Those details will show how much room remains for synthetic products in U.S.-linked markets.
DTCC’s planned tokenization service is another pending milestone. The source says it is expected to launch in 2026 but gives no specific date or operational details. Until more information is available, it remains uncertain whether digital twins will deliver the expanded access and market activity their proponents anticipate.
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Key Questions
What is a synthetic tokenized stock?
In the products described by the column, it is a security that tracks a stock’s price but does not give its holder ownership of the underlying share. The column says these products are issued as debt securities by an offshore subsidiary.
What did the SEC exemption reportedly exclude?
The CoinDesk column says the SEC’s Sept. 17 innovation exemption excludes synthetic tokens. It describes qualifying tokens as those representing real ownership and providing rights such as dividends and voting. The source does not include the full regulatory text.
What was the dispute between AMC and Robinhood?
AMC CEO Adam Aron objected to Robinhood tokenizing AMC stock without consent and called the product “vile.” Robinhood CEO Vlad Tenev said consent was not required and framed the product as a response to international demand for U.S. equity exposure, according to the column.
How would a digital-twin token differ?
The column describes a digital twin as a token representing the same share held in custody, rather than a separate instrument that only tracks its price. It says the share would remain within the U.S. clearing and settlement system, but the planned service’s launch and operation are not confirmed in the source.
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