The founder of ConsenSys is sceptical that U.S. regulators would label Ethereum a security

There is a minimal probability that U.S. financial authorities would label $ETH security, according to Joseph Lubin, co-creator of Ethereum (ETH) and founder of ConsenSys.

In light of Ethereum’s switch to a proof-of-stake (PoS) structure, Lubin was recently questioned by Cointelegraph whether or not he believed $ETH should be classified as a security.

What he really stated was, “Similar to the consequence of making Uber illegal, I believe this is quite plausible.”

Lubin went on to say that there would be a “tremendous uproar” from the cryptocurrency community, “various politicians, and specific authorities” if $ETH were classified as a security.

Contrast this with Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), who indicated in September that Ethereum’s move to PoS may need increased scrutiny as a security. Gensler likened staking coins to a method through which ordinary people may gain “benefits based on the labour of others” in the form of investments.

Contrary to Gensler’s claims, Lubin said that he has been involved in crypto negotiations with the SEC and U.S. Commodity Futures Trading Commission (CFTC) “for many years.”

Following up, Lubin said, In their minds, anything might be considered a security. They left when we helped them realise many tokens are not securities, and now Gary and his colleagues see practically anything as security.

In conclusion, Lubin said that American courts would “be sympathetic” to arguments against $ETH’s classification as a security.

Also Read: The G20 Is Investigating The Possibility Of Coordinating Crypto Legislation