Kraken has responded to the US Securities and Exchange Commission's (SEC) allegations of violating federal securities laws, as reported by Golden Finance. The SEC claims that several digital assets offered by Kraken are unregistered securities. In its legal response, Kraken vehemently denies these accusations, maintaining that the assets in question do not meet the legal definition of securities under US law. This includes Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), and other digital assets traded on Kraken, which the exchange argues are not investment contracts.

Kraken contends that the SEC has failed to demonstrate that these digital assets meet the standards outlined in the Howey Test, and therefore, are not subject to the SEC's jurisdiction.