Ethereum's Decentralization Progress May Prevent Security Classification, Analysts Suggest

JPMorgan's latest report indicates Ethereum's increased decentralization and recent upgrades could shield it from being labeled a security by the SEC.

• JPMorgan analysts believe Ethereum's chance of avoiding a security classification has improved due to its increased decentralization.
• The decline in Lido's share of staked Ethereum from about one-third to a quarter is seen as a positive sign for the network's decentralization.
• The SEC has previously stated that tokens on a sufficiently decentralized network may not be considered securities.
• Ethereum's recent Dencun upgrade is highlighted as a positive development, potentially increasing its dominance against other blockchains.
• Analysts suggest that further Ethereum upgrades, such as the upcoming Petra upgrade, could continue to benefit the network.

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