Security =/= Crypto
Not being a security does not mean it's not a crypto. Bitcoin is a crypto but not a security meaning it is not directly regulated by the SEC.
Bitcoin, due to its decentralized nature, market cap, and lack of involvement by its founder, does not fit the criteria of a security according to them.
These are not the main factors that distinguishes Bitcoin from securities.
A security is an asset which tries to raise capital in exchange such as when a new token runs an IDO or ICO.