It depends. Digital assets can be securities or not. Securities are negotiable financial instruments issued by a corporation or government that grant ownership, debt rights, or the right to buy, sell, or trade an option. Bitcoin, for example, is not typically defended as a security because it has no centralised governance and price fluctuations are primarily due to supply and demand, rather than the success of a company or centralised organisation. However, some digital assets are classified as securities under various frameworks and are thus subject to SEC regulations.

Whether cryptocurrencies are considered securities is a debated topic and varies based on the specific cryptocurrency and jurisdiction. Securities are traditionally defined as financial instruments representing ownership, debt, or rights to profit from a common enterprise, typically subject to regulation. In the U.S., the Securities and Exchange Commission (SEC) uses the Howey Test to assess if an asset is a security: it evaluates whether there's an investment in a common enterprise with an expectation of profit primarily from others' efforts. Many cryptocurrencies, like certain ICO tokens, have been deemed securities under this test because they fund projects with anticipated returns. However, cryptocurrencies like Bitcoin and Ethereum are generally considered commodities, not securities, due to their decentralized nature and lack of a central issuer.