If centralization and decentralization of a project is the major determinant of whether a coin/token would be referred as a security or a commodity, it therefore means that there will be an unending conflicts and misunderstanding between the project owners and the SEC.
Such a conflict already exists and there is a huge misunderstanding about what exactly classifies a project as a security, while the SEC keeps adding more currencies to the list. There have been cases[1][2][3] where a crypto project denied the label of a security which was put on it.
Does this therefore means that SEC will soon take over the cryptocurrency industry all in the name of security regulations?
It is possible, besides bitcoin and maybe a handful other cryptocurrencies all others can be labelled to be centralized technically, especually if they run a sort of coin offering to raise funds for the project.