Kraken Responds to SEC Allegations, Claims Digital Assets Do Not Qualify as Securities
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
Kraken has responded to allegations from the United States Securities and Exchange Commission (SEC) that it violated federal securities laws.
The SEC claims that several digital assets offered by Kraken should be classified as unregistered securities.
In its defense, Kraken has denied these accusations, asserting that the assets in question do not meet the legal criteria to be considered securities.
In its response, Kraken argued that digital assets, including popular cryptocurrencies such as Cardano (ADA), Algorand (ALGO), and Cosmos (ATOM), do not qualify as investment contracts under U.S. law.
According to the exchange, these assets and others listed on its platform should not be regulated by the SEC.
“Kraken did not violate Sections 5, 15(a), and 17A of the Securities Exchange Act of 1934 because ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL are not securities or investment contracts,” the legal filing states.
⚡ BREAKING: #Kraken pushes back against #SEC claims, firmly stating that $ADA and $ALGO are not securities, while calling out the SEC for overstepping its authority!
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