How can they tell which token or coin is security and which is not?
On research the best answer I got is that they consider which crypto is sufficiently decentralized and determines that it is not a security. I can only think that decentralized projects cannot give ownership cause there is no central point of control.
If centralization and decentralization of a project is the major determinant of whether a coin/token would be referred as a security or a commodity, it therefore means that there will be an unending conflicts and misunderstanding between the project owners and the SEC.
This is because some projects are centralized while they pose to the public to be decentralization. Apart from bitcoin, there are no much of them if any that is 100% decentralization. Does this therefore means that SEC will soon take over the cryptocurrency industry all in the name of security regulations?