The SEC has filed a preliminary statement in court against Coinbase, arguing that the exchange's business practices do not align with the current securities regulation framework, specifically the Howey Test. Coinbase had petitioned the SEC to create new rules tailored for crypto assets, citing difficulties in compliance. The SEC's response, led by Gary Gensler, emphasizes that Coinbase cannot complain about the regulatory environment it chose to operate in. Judge Katherine Polk Failla's March order found that the SEC adequately pled that Coinbase offered securities. Additionally, Coinbase's chief legal officer has criticized the SEC for not following its typical Wells Notice process in the case against Debt Box.