Can a Token with Immediate Utility Still Satisfy the Expectation of Profit Prong?

Yes, a token can have both immediate utility and satisfy the expectation of profit. If the primary motivation for a significant number of purchasers is the token's potential price appreciation rather than its current use, the "expectation of profit" prong is met.

Regulators look at the overall economic reality and marketing, not just the token's technical function. A token with utility that is heavily promoted as an investment will likely be deemed a security.