In an official legal document, Kraken strongly refuted the charges brought forth by the SEC, which alleged that multiple digital assets offered by Kraken, including Cardano (ADA), Algorand (ALGO), and Cosmos (ATOM), constituted unregistered securities. Kraken emphasized that according to the legal definition of securities in U.S. law, these digital assets do not fall under the category of securities and should therefore not be regulated by the SEC. The exchange further noted that the SEC failed to provide sufficient evidence demonstrating that these digital assets met the standards set by the Howey Test, thereby failing to classify them as securities. This response highlights the ongoing tug-of-war between the cryptocurrency industry and traditional financial regulatory bodies, with both sides having differing interpretations of what constitutes a 'security'.