Coinbase submits proposals to CFTC, urging clear rules for DeFi, stablecoins, and crypto platforms to boost U.S. market structure.
Coinbase has submitted a detailed proposal to the U.S. Commodity Futures Trading Commission (CFTC), urging updates to crypto market regulations.
This submission comes as part of the agency’s request for public input on the President’s Working Group Report on Digital Assets. Moreover, Coinbase focused on regulatory clarity for decentralized finance (DeFi), stablecoins, and multi-service crypto platforms.
Coinbase Requests Clearer Regulations for DeFi and Integrated Platforms
Coinbase proposed that the CFTC establish rules that support all-in-one platforms offering trading, custody, and settlement services.
The exchange said that such platforms can improve efficiency and lower costs for market participants while still protecting users. In its letter, Coinbase asked for a framework that balances innovation with safeguards like conflict-of-interest controls.
The company also addressed the need for regulatory structures that allow customers to benefit from using these integrated platforms.
According to Coinbase’s Chief Policy Officer Faryar Shirzad, these suggestions aim to promote responsible growth and reduce risk. He shared parts of the submission on X, stating that clear rules are important for the industry’s development.
Coinbase noted that the crypto market continues to expand and needs modernized standards.
It supported the CFTC’s recent approval of Polymarket to operate in the U.S., calling it an example of adapting oversight to newer models. The company believes more engagement with such platforms can help define proper rules going forward.
Stablecoins Proposed as Collateral to Boost Market Liquidity
Coinbase also recommended that the CFTC allow the use of stablecoins as collateral in futures markets.
The firm said that stablecoins offer faster settlement and reduced risk for market participants. This change, it stated, would improve liquidity and allow 24/7 trading in regulated environments.
The proposal supports a recent CFTC initiative exploring stablecoin use in collateral structures.
Coinbase said that this aligns to make the U.S. derivatives market more competitive globally. The company added that stablecoins could help meet growing demand without increasing risk.
In its submission, Coinbase highlighted its own experience as a licensed futures commission merchant and contract market operator.
It said this experience allows it to understand how digital assets and traditional markets interact. It also said its operations follow long-standing CFTC principles and can support updated regulatory practices.
Related Reading: Coinbase Launches Business Platform in Singapore
Support for CFTC’s Principles-Based Framework
Coinbase expressed support for the CFTC’s approach of using broad principles instead of strict rules. The company said this strategy has worked in traditional markets and can be adapted to crypto assets. It welcomed the agency’s openness to testing new rules as market conditions change.
The letter mentioned that cooperation between the CFTC and the SEC is also needed. Coinbase referred to recent comments by CFTC Acting Commissioner Caroline Pham about joint efforts between agencies. The company said ongoing dialogue is key to making workable rules.
Coinbase’s submission is part of a wider public discussion about how crypto fits into the U.S. financial system. As regulators respond to feedback, new rules may shape the future of DeFi, stablecoins, and crypto trading platforms.
Source: https://www.livebitcoinnews.com/crypto-news-cftc-receives-coinbase-proposal-to-improve-crypto-market-rules/
