how does the sec define a security 
securities are fungible and tradable financial instruments used to raise capital in public and private markets the public sales of securities are regulated by the sec the definition of a security offering was established by the supreme court in a 1946 case called sec v w j howey co 12the bottom linethe howey test sets out the criteria for what counts as an investment contract which then determines the laws and regulations that the contract needs to abide by as set out by the sec as cryptocurrencies have been an important asset in the last few years regulators have sought ways to regulate them often utilizing the howey test to make determinations 