The chairman of the SEC deserves all the criticism in the world for how he handled the FTX disaster.

The SEC has a fantastic history of underestimating, ignoring and in some cases facilitating scams. Friendly reminder: the SEC had the chance to stop Madoff not once, not twice but three times but never did.

They allowed a multi-million-dollar scam to balloon to $64.8 billion before they actually did something to stop it.

However, when it comes to BUSD, the SEC is right: it is a security. Of course it is.

Now, the definition is a bit vague and Wikipedia will tell you that a security is a tradable asset that's fungible.

However, generally speaking, a security is any form of financial asset that's directly interlinked with the market and financial performances of the entity that issues said securities.

Whether directly or indirectly.

Let's take Tesla stock as example. It's a security. The value can and will fluctuate based on Tesla's earnings, sales, etc.

BUT it will also fluctuate if Elon Musk, the CEO, Tweets something controversial, which he does every other day by the way.

The same applies to BUSD. This is because CZ, CEO of Binance, can potentially make decisions that alter the value of BUSD. The same thing applies to most altcoins, to be honest.

In other words, a security is any asset where the expectation of profit is coming from an identifiable third party.

Bitcoin, on the other hand, isn't a security because it doesn't have a CEO, it doesn't have a board of directors. In other words, there's no entity or individual that can arbitrarily alter its value with one decision.