SEC did this to ENG as well. Any project that is not decentralized enough and is based out of the US will get bent over. Mark my words. The SEC is methodical, and this is just a series of many prosecutions to come.
The reason decentralization is important because if not enough decentralization exists, they can point to a single entity that is responsible for generating a return for investors. I.e. a publicly traded company…a Security.