Comment by brasic

It’s not the SEC’s definition, it’s the supreme court’s:

If:

  - It is an investment of money
  - There is an expectation of profits from the investment
  - The investment of money is in a common enterprise
  - Any profit comes from the efforts of a promoter or third party

Then it’s a security.

https://en.m.wikipedia.org/wiki/SEC_v._W._J._Howey_Co.