Chances of a successful outcome are high. Ether (ETH) JPMorgan’s new report shows that the amount of securities being avoided is on the rise. Staking platform Lido’s share of staked Ether continues to fall. The Ethereum network should be less crowded now.
“The share of Lido in staked ETH has decreased further from around one-third a year ago to around a quarter at the moment,” The analysts, led by Nikolaos Pantigirtzoglou, wrote. Based on the Howey tests and an analysis of Hinman documents that reveal the SEC’s classification system, the SEC may conclude Ether does not qualify as a security.
The analysts have written about the Hinman Documents.” revealed the role of network decentralization in the SEC’s thinking on whether a digital token should be classified as a security or not.” The US regulator won’t classify tokens as securities if they are sufficiently decentralized.
Also Read: Ethereum Drops Below $3,300: Can It Reach $3,500 This Week?
The Howey test determines whether a particular transaction is a contract for investment or a security. Ether will become a cryptocurrency if it avoids being classified as a financial instrument.
Furthermore, the report adds that the recent Dencun upgrade It is not necessary to be able to understand “help Ethereum to increase its dominance against alternative layer 1 blockchains and to recapture the lost market share due to previous scalability issues.”
Ethereum (ETH), has had a turbulent journey in the second quarter 2024. Current priced Last month, Ether was trading at $3381.97. This is a 5% drop. Ether could experience a big jump if Ether follows XRP in avoiding the security designation.
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Source: watcher.guru
