Investing.com - One of the biggest questions for the cryptocurrency markets has been answered.And that's what qualifies as a security, and is therefore subject to the same kind of regulation the Securities and Exchange Commission applies to stocks and bonds?A top SEC official explained it all at a recent crypto conference.The SEC's top crypto official William Hinman said most cryptocurrencies, such as bitcoin and ether, are not securities.That's because the currencies are run by decentralized networks and are not necessarily being offered as investments by a third party.Hinman said most digital coins, or tokens, sold through initial coin offerings, ICOS, are securities. That's because they are being offered by a centralized third party to raise money with the expectation of a return on the purchase or investment. The SEC has been cracking down on ICOs because of their potential for fraud.