JPMorgan: As the risk of centralization eases, Ethereum may avoid being designated as a security

According to CoinDesk, a research report released by JPMorgan on Wednesday stated that the continuous decline in Ethereum's share staked by Lido will reduce people's concerns about centralization of the Ethereum network and increase the chances of ETH not being classified as securities in the future.

The analyst team led by Nikolaos Panigirtzoglou wrote: "Lido's share in staking Ethereum has dropped from about one-third a year ago to about one-fourth now"; The Hinman document released last June "revealed the role of network decentralization when SEC considers whether digital tokens should be classified as securities"; Officials from the U.S. Securities and Exchange Commission (SEC) have previously admitted that "tokens on sufficiently decentralized networks are no longer securities because there is no controlling group in Howey’s sense."

The report also added that recent Dencun upgrade should "help Ethereum enhance its dominance over alternative Layer1 blockchains and regain market shares lost due to previous scalability issues."