The SEC won a case last year which pretty much answered the question "is it a security" as "Yes" for just about everything where the promoter can make money off of it.
An investment contract exists if there is an "investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others." - US vs Howey.
The "oh, but crypto is different" argument doesn't fly any more. Not since FTX.
You can still watch "Don't be like Larry", FTX's Super Bowl ad.[1]
Oh interesting, I didn't know about that. I thought the XRP case was still ongoing so didn't realise there had been change.
Wasn't trying to make value judgements on whether anything is a security, just was wondering if it's how US crypto exchanges could operate in this weird legal grey zone
The brokerage regulations are just common sense and it would be a shame if they got tied into battles about whether token XYZ is a security or not.