Quite a few media organizations argued that 50 USC 421 et seq was not violated, for exactly that reason. Their argument was presented in an Amicus brief to the Circuit Court of appeals in the Cooper/Miller case.
The original investigation by DOJ was triggered by the CIA referral - and ironically, mushroomed into an independent counsel case on political pressure from DEMs and the media.
And that DOJ referral contends that she was covert.