According to ChainCatcher, Kraken responded to the U.S. Securities and Exchange Commission (SEC)'s allegations that it violated federal securities laws. The SEC claims that the various digital assets offered by Kraken are unregistered securities. In response to legal documents, Kraken firmly denied the allegations, insisting 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 prove that the digital assets involved met the standards outlined in the Howey test and therefore did not fall under the jurisdiction of the SEC.