A security is a financial instrument and an asset that can be traded. It is defined in the Securities Act of 1933 and the Securities Exchange Act of 1934 and is subject to specific regulations that it must comply with such as disclosures and registrations. A security (such as a security token) will require Know Your Customer (KYC) to verify the identity of its investors and for them to comply with Anti-Money-Laundering laws and regulations to stop income through illegal actions.
The METM token is a utility token - not a security token. The utility of the token is to offer a user-friendly platform and to grant discounts on trading fees to holders when they trade using the MetaMorph platform.