Cryptocurrencies are not securities

And don't believe SEC and Gary Gensler can prove all of them are. There is absolutely no case law to prove his point, and the history of many different blockchain projects proves he is indeed wrong.

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So, SEC is arguing all crypto is a security (apart from BTC). Why? Bcs they are following one (slightly outdated) theory: whether there is sufficient decentralization in a crypto project at any given point in time.

But they are (somewhat) wrong as it's not all black or white. Not all cryptocurrencies are the same. Same principles cannot be applied to all of them. E.g. they can say ETH was a security. And it was in a way. Why? Bcs it was centralized at the moment of the ICO. However, ETH did the impossible, and has morphed over time, thereby achieving decentralization.

Also, they are applying the Howey test (to an extent). 4 elements of the Howey test, and one would need to pass all 4 tests, include:

1. An investment of money
2. In a common enterprise
3. A reasonable expectation of profit
4. Derived from the efforts of others

If you pass the Howey test, it's a security (and you must adhere to a strict set of regulation). Again, looking at solely that one point in time, ETH was security during it's ICO (even the former head of SEC said he didn't see a single ICO that was not a security).

The Howey test is also one of the reasons certain coins/tokens (I can think of some storage coins) don't allow price talk: it would classify them as securities, as an investor would expect a profit derived from the effort of others.

The thing is, there is a difference between initial investing in a project from the cryptoasset being traded. Me trading ETH with a counterpart, through an intermediary such as a CeX or DeX, has nothing to do with the initial investment or expecting a profit.

No Gary, they are not securities. And you should know better.