A recent research report by JP Morgan Pursuit & Co. JPM highlights how the US Securities and Exchange Commission (SEC) views most cryptocurrencies as securities.

This view also extends to staking services, which the SEC considers similar to offering any other type of security.

The report acc To Coindesk predicts that stablecoin issuers, custody and protection of investors’ digital assets, and unbundling of broker/dealer/lending/clearing/custodial activities will face increased regulatory action.

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The bank also expects regular disclosure, reporting, and auditing of reserves, assets, and liabilities across major crypto entities.

These regulations will eventually lead to the “convergence of the crypto ecosystem to the traditional financial system over time.”

The staking business should shift towards direct staking for institutional investors and more towards decentralized alternatives for retail investors (Decentralized Finance, or DeFi, is an umbrella term for various financial applications running on a blockchain).

ether ETH/USD will face increased selling pressure after upcoming Shanghai upgrade, JPMorgan predicts.

Exchange of cryptocurrencies octopus has staked 1.2 million ETH on the network, and a significant portion of that ETH is owned by its US clients.

Add in the one million Ether from staking rewards that could be withdrawn immediately after the upgrade, and Ether’s downside risk becomes even greater.

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