Kraken has responded to the US Securities and Exchange Commission (SEC) charges that it violated federal securities laws. The SEC claims that multiple digital assets offered by Kraken are unregistered securities. In a legal document, Kraken firmly 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 it argues are not investment contracts. The exchange contends that the SEC has failed to demonstrate that the digital assets in question meet the standards outlined in the Howey test, therefore falling outside of the SEC's jurisdiction.