Kraken responded to allegations by the Securities Exchange Commission (SEC) that it violated federal securities laws. The SEC claims that various digital assets offered by Kraken are unregistered securities. In its legal filing response, Kraken firmly denies the allegations, maintaining that the assets involved do not meet the legal definition of securities under U.S. law, including Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), and other digital assets traded on Kraken are not investment contracts. The exchange argued that the SEC failed to demonstrate that the digital assets in question met the criteria outlined in the Howie test and therefore did not fall under the SEC's jurisdiction.