Kraken says digital assets are not securities, denies SEC allegations

According to Mars Finance, Kraken responded to the U.S. Securities and Exchange Commission (SEC)'s allegations that it violated federal securities laws. The SEC claimed that the various digital assets offered by Kraken were unregistered securities. In response to legal documents, Kraken strongly denied the allegations, insisting that the assets involved did 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 were 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 SEC's jurisdiction.