A Lightning hub is very different than a bank. They route transactions and collect fees. Anyone can participate in the network and run a hub. A Lightning hub has no ability to seize assets.
In this video (also linked below), there are two arguments:
- Lightning Hubs could lead to centralization
A hub is not a centralized node that has full power over all of their open channels. A Lightning hub does not even hold anyone's bitcoin, they simply supply capital to allow transfers. There is no fractional reserve banking, no lending, and no ability to seize assets. A hub runs a node with enough capital, and collects small fees for people using it. Just like anyone can run a Bitcoin full node, anyone can run a Lightning node / hub.
- "Lightning Hubs will be required to be setup for financial regulation and reporting laws"
This is a baseless claim. Anyone can run a hub. If a particular hub requires regulation and reporting, people can just move to another. There is absolutely no way to enforce the system to adopt financial regulation and reporting laws.
For more information on how that video is both misleading and technically inaccurate - https://github.com/lightningnetwork/lightning-onion
