Coinbase Submits Proposals to CFTC, Urging Clear Rules for DeFi, Stablecoins, and Crypto Platforms
Coinbase has stepped into the spotlight by submitting a comprehensive proposal to the U.S. Commodity Futures Trading Commission (CFTC). This move aims to initiate critical updates to crypto market regulations. As part of the agency’s call for public input on the President’s Working Group Report on Digital Assets, Coinbase emphasized the necessity for clearer regulations surrounding decentralized finance (DeFi), stablecoins, and multi-service crypto platforms.
Coinbase Requests Clearer Regulations for DeFi and Integrated Platforms
In the proposal, Coinbase advocates for the establishment of regulations that support all-in-one platforms that encompass trading, custody, and settlement services. The exchange argues that such integrated platforms can boost efficiency and reduce costs for market participants while ensuring user protection. Coinbase’s detailed letter seeks a regulatory framework that strikes a balance between innovation and essential safeguards, particularly through conflict-of-interest controls.
Coinbase’s Chief Policy Officer, Faryar Shirzad, reiterated that these recommendations aim to encourage responsible growth while mitigating risks. He actively shared portions of the submission on social media, underscoring the importance of clear rules for fostering industry development.
Today we submitted @coinbase‘s response to the @CFTC‘s request for information on the President’s Working Group Report on Digital Assets.
Our letter contained the following key recommendations:
1) Allow customers to reap the benefits of vertical integration, while implementing… pic.twitter.com/QEkehlKi9j— Faryar Shirzad 🛡️ (@faryarshirzad) November 28, 2025
Highlighting the growing nature of the crypto market, Coinbase emphasizes the need for modernized regulatory standards. They supported the recent approval of Polymarket by the CFTC, deeming it an important step in adapting oversight for newer market models. By engaging more closely with such platforms, they believe clearer regulatory frameworks can be defined.
Stablecoins Proposed as Collateral to Boost Market Liquidity
Another cornerstone of Coinbase’s proposal is the suggestion to permit the use of stablecoins as collateral in futures markets. The exchange argues that stablecoins facilitate quicker settlement times and mitigate risks for market participants. This proposed change is expected to enhance liquidity and enable continuous 24/7 trading in regulated environments.
Coinbase sees this recommendation as aligning with a recent CFTC initiative that is exploring the viability and utility of stablecoins as part of collateral structures. They stress that such a move would position the U.S. derivatives market as a more competitive entity on the global stage, asserting that stablecoins can meet rising demand without escalating risk.
In providing context for these recommendations, Coinbase pointed to its own experience operating as a licensed futures commission merchant and contract market operator. This background allows them to grasp the intricacies of interactions between digital assets and traditional markets, as well as adhere to established CFTC principles to support evolving regulatory practices.
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Support for CFTC’s Principles-Based Framework
Coinbase voiced strong support for the CFTC’s approach of favoring broad principles over rigid rules. They believe this methodology has proven effective in traditional markets and can be effectively applied to the evolving landscape of crypto assets. The exchange appreciates the CFTC’s willingness to test new rules as market conditions shift.
The letter also emphasizes the necessity for collaboration between the CFTC and the SEC. Citing remarks by CFTC Acting Commissioner Caroline Pham, Coinbase highlights the importance of ongoing dialogue between these agencies to cultivate workable rules that will meet the needs of a dynamic market.
As public discussions continue about the integration of cryptocurrency into the U.S. financial system, Coinbase’s submission stands as a noteworthy contribution. The responses from regulators will shape the future landscape of DeFi, stablecoins, and crypto trading platforms, marking a significant turning point in the industry.