to the best of my knowledge, crypto isn't considered a security because it is in a legal grey area of definitions. It acts like both a currency and an investabl

to the best of my knowledge, crypto isn't considered a security because it is in a legal grey area of definitions. It acts like both a currency and an investable asset. Also, the security denotation has regulatory implications. In the US, securities are regulated by the SEC. An alternative to a security is a commodity. Commodities are essentially raw materials that are used to produce other goods/services such as wheat and oil. Commodities are regulated by the CFTC, which has its own set of regulations which is normally less stringent than the SEC's. Normally, any new asset that is considered a security needs to pass the [Howey Test](https://www.investopedia.com/terms/h/howey-test.asp https://www.investopedia.com/terms/h/howey-test.asp). Some cryptocurrencies currently do, but are still not considered a security necessarily since it's still an ongoing discussion.