Kraken challenges the Securities and Exchange Commission's interpretation of investment deeds concerning transactions on its platform in an appeal aimed at dismissing a case brought by the SEC.

The appeal emphasizes the distinction between initial offerings conducted externally and internal secondary transactions, highlighting that digital assets are traded on Kraken, not investment deeds.

Additionally, Kraken argues against the SEC's attempt to regulate cryptocurrency spaces without proper congressional authority, while the SEC contends that such matters should be addressed by Congress rather than the courts.

In its appeal conclusion, Kraken asserts that no investment deeds are involved in its operations, urging the court to dismiss the case entirely, citing a prior Supreme Court statement questioning the SEC's authority in legal matters.