#CryptoSecurity101 According to the definition provided by the SEC, security tokens are those based on assets. They are also fungible and often equivalent to other types of securities such as company stocks.

This distinguishes them from utility tokens. Their value is more abstract and is based on the role they play in the ecosystem in which they operate.

Currently, the SEC has only declared a few cryptocurrencies as utility tokens - two of these are Bitcoin and Ethereum.

The unofficial position of the American regulatory authority is that any token is a security. This is until it reaches the level of development and decentralization of Bitcoin and Ethereum.