There is a fine line between a coin that is considered a
security and
a coin that is considered a
utility token.
As the name implies, a
utility tokens provide some sort of service or product to the end user.
A typical example of utility token is
filecoin. It offers storage space to the users.
But, if the utility token is advertised as an investment opportunity (common enterprise with profit
expectation based mainly on efforts of other people), than it can easily be considered
a security token, despite its utility value.
So, as far as legal matters are concerned, the distinction is rather vague and SEC can easily
decide to treat a token as security, even though it may have great utility value.