Franz Lubin, co-founder of Etherum and an elite in the data encryption business, firmly believes that Ether (ETH) is not classified as a securities in the United States.

Cointelegraph visited Lubin, co-founder of etheric co-founder and blockchain application company Consensys, at Engineering Architecture 23, a Web3-themed event in Tel Aviv.

Asked whether ETH could be classified as a securities in the United States after the etheric switch to the consensus model of risk confirmation (POS), Lubin said:

"I think it's very likely that it will do the same harm, just as uber is listed as illegal."

He added: "not only the password community, but also different types of politicians and other regulators will protest strongly."

In September, Gary Gary Gensler, the current chairman of the Securities and Exchange Commission (Securities And Exchange Commission), made it clear that the transition from blockchain technology to POS could expose ETH to regulatory impact.

Gensler feels that gambling money gives "project investors" the expectation of "returns based on the diligence of others".

Benson said he participated in "many years" of discussions between the Securities and Exchange Commission and the Commodity Futures Trading Federation.

About five years ago, he said, regulators were "just trying to figure out what tokens are."

At that time, they felt that everything was safe. Everyone-I think-helped it significantly understand that many tokens were not safe, and then left, Gary and the team now feel that basically everything is safe.

However, Lubin felt that ETH was still "sufficiently fragmented" and stressed that "many test cases do not mean that it is a kind of security."

"there is not a dense group of leaders or builders professionally trying to increase the value of the ether, and investors get rich in their families," he added.

"there is a court system in the United States, and I think he will apply arguments that he thinks are not the case."

Lubin said that regulators seem to be paying more attention to another aspect of the ether at this stage, stressing that he knows people who are close to the behavior of the city of Washington, saying, "now most of the focus is on stable currencies."

"everyone is talking about it, and they are all scared. Summoning what needs to be done.

On Twitter, Coinbase founder and CEO Bobby Armstrong responded to rumors that the Securities and Exchange Commission (SEC) was working to ban retail customers from betting on login passwords.

"wooden posts are not safe," he said, adding that it would be a "very bad road for the United States". If a bargaining chip restriction is based, it will be "a vital independent innovation in logging into the password industry".

Armstrong said: "We look forward to working together to establish rules and effective solutions for publishing in this area, and to maintain independent innovation while maintaining customers."