Coinbase Urges CFTC for Clear Crypto Regulations, Pushes Stablecoin Collateral in Derivatives

Coinbase has submitted a series of policy recommendations to the Commodity Futures Trading Commission (CFTC), calling for clearer regulations on decentralized finance (DeFi), stablecoins, and all-in-one crypto platforms. The submission, dated November 29, 2025, aims to ensure the development of a robust, safe, and innovative crypto market, particularly as the CFTC reviews its regulatory framework following the President’s Working Group Report on Digital Assets.

Coinbase emphasized the need for precise regulations in the rapidly growing DeFi sector, noting that current rules are insufficient to accommodate its expansion. The company proposed a realistic regulatory framework for DeFi derivatives markets to ensure proper supervision. Additionally, Coinbase advocated for allowing stablecoins to be used as collateral in U.S. derivatives markets, arguing that this would enhance liquidity, enable continuous settlement, and improve market efficiency.

The recommendations also address the benefits of all-in-one crypto platforms, which could streamline operations and reduce costs for participants, but Coinbase stressed the importance of strong conflict-of-interest protections to balance innovation and security. This move aligns with the CFTC's recent approval of Polymarket, a U.S. exchange, signaling increased engagement with new crypto trading platforms.

In its policy paper, Coinbase highlighted the role of stablecoins in strengthening U.S. derivatives markets, suggesting that their adoption could position the U.S. competitively in global trading. The company acknowledged the CFTC's principles-based regulatory approach and called for enhanced cooperation between the CFTC and the Securities and Exchange Commission (SEC) to clarify crypto regulations. "These recommendations are based on proven steps that can facilitate innovation as well as decrease unwarranted risk," said Faryar Shirzad, Chief Policy Officer at Coinbase.