Because the issuers of the token (management) don't directly benefit from its use. It is the selling and profiting off the token that makes it a security. If

Because the issuers of the token (management) don't directly benefit from its use. It is the selling and profiting off the token that makes it a security. If it provides utility to the participants and doesn't provide a direct incentive to the issuer, it is not a security. ICO's certainly bring all of these things into a discussion though, don't they?