Coinbase Urges CFTC to Build Clear Rules for U.S. Crypto Market

Coinbase has called on the Commodity Futures Trading Commission (CFTC) to adopt clearer and more practical rules for the fast-growing crypto sector. 

The company recently submitted detailed policy recommendations. This followed the agency’s request for public feedback on the President’s Working Group Report on Digital Assets.

Coinbase Pushes for Balanced Rules That Support Innovation

In a recent X post, Coinbase’s Chief Policy Officer, Faryar Shirzad, shared parts of the submission. He noted that the suggestions come from proven methods that support innovation while keeping risks under control.

In its letter, Coinbase outlined several proposals for improving how crypto markets operate in the United States. The company asked the CFTC to make new rules for derivatives, stablecoins, and all-in-one crypto platforms. 

These platforms let people trade, store, and manage digital assets in one place. They also lower costs and work more efficiently, but it still needs strong protections to avoid conflicts of interest. 

The company also asked the CFTC to approve new setups that help users get more benefits from these services while keeping the market fair and safe.

Calls for a Clear Framework for DeFi and Stablecoins

One of Coinbase’s major requests is that the CFTC design a practical regulatory framework for the decentralized finance (DeFi) derivatives market. The company noted that the DeFi sector is expanding rapidly and now requires oversight that matches its scale and complexity.

Coinbase also recommended that stablecoins be accepted as collateral in futures markets. According to the company, stablecoins can reduce risk and allow trading to happen at any time, something traditional collateral cannot fully support. 

The CFTC’s recent efforts to explore stablecoin collateral show increasing interest in this area. In its letter, Coinbase argued that stablecoin collateral could strengthen market liquidity, since settlements could take place around the clock. The company said this would help the United States hold a strong position in the global derivatives market. 

Coinbase’s recommendations come shortly after the CFTC allowed Polymarket to operate as a U.S. exchange. This move signals that the agency is becoming more open to different kinds of crypto platforms. 

Coinbase Highlights Its Market Experience and Long-Standing Standard

Coinbase reminded the CFTC that its licensed subsidiaries already operate key market functions. These include serving as a futures commission merchant and running a designated contract market.

This experience, it said, gives the company a clear understanding of how digital asset markets work in practice. Coinbase added that new crypto rules should still align with the CFTC’s long-standing principles. 

The crypto exchange praised the agency for being willing to test new approaches as the crypto market continues to change. This aligns with recent statements from Acting Commissioner Caroline Pham, who said that the CFTC will work with the SEC to clarify crypto regulations.