What is a security? What are they even talking about? Anyone has a clue? How can they tell which token or coin is security and which is not? How will these exchanges know what they did wrong if there is nothing that proves that a particular token is security?
According to the SEC, security tokens are those digital assets that are designed and, at the same time, marketed as security.
What I understand is that security tokens are said to be those tokens that represent a particular project, company, or even individual ownership and can be traded, staked, and investors rewarded based on their staking amount. Those token/coins are considered and seen to be same as real estate and other stock investment and as such should be considered and treated thesame way the above mentioned are treated. This is based on my level of understanding.