# Securities

> A regulated category of financial instrument, like shares or bonds. Tokens that meet the test are subject to strict rules.

Canonical URL: https://business.fudfomo.co/glossary/securities
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A security is a regulated kind of financial instrument: shares, bonds, investment contracts, and similar products. Selling or trading a security requires registering with regulators, publishing disclosures, and meeting investor protection rules.

Whether a crypto token counts as a security is one of the most argued questions in the industry. The answer depends on the jurisdiction, the way the token was sold, and how it functions in practice.

## Regulatory context

A token can be treated as a security in one country and not another. Always check the local rules before fundraising or listing.

## Related terms

- [ICO](https://business.fudfomo.co/glossary/ico): Initial coin offering. An early sale where a project raises money by selling its new token.
- [Howey Test](https://business.fudfomo.co/glossary/howey-test): A US legal test for deciding whether something counts as an investment contract, and so a security.
- [SEC](https://business.fudfomo.co/glossary/sec): The US Securities and Exchange Commission. The American regulator that decides whether a token counts as a security.
- [MiCA](https://business.fudfomo.co/glossary/mica): The Markets in Crypto-Assets regulation. The European Union's main rulebook for crypto firms.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co