Coinbase Submits Crypto Regulation Proposal On Derivatives, Stablecoin

Key Insights

• In latest crypto news, Coinbase submitted crypto regulation proposals outlining how the U.S. should handle crypto derivatives and stablecoin.
• The crypto exchange said stablecoins could reduce certain risks and give traders the ability to settle positions at any time.
• Coinbase premium just turned positive after months of staying in the red.

In latest crypto news, Coinbase issued a set of recommendations to the Commodity Futures Trading Commission (CFTC).

This followed a request for feedback on the President’s Working Group report. The exchange noted it was ready to throw its expertise and participate in the creation of relevant crypto regulations.

Crypto News: Coinbase Calls for Clearer Regulations on DeFi & Stablecoin

Faryar Shirzad, Coinbase Chief Policy Officer, shared excerpts from the filing on X.

He said the recommendations draw from approaches that have already worked in other markets, noting that they can support innovation while reducing unnecessary risks.

The submission also outlines how the U.S. should handle crypto derivatives, stablecoins, and the growing number of platforms that offer several services under one roof.

The exchange also urged the regulator to allow new structures that let customers benefit from all-in-one crypto platforms.

Coinbase also stressed that any platform running multiple market functions needs firm rules in place to avoid conflicts of interest.

The Company said a unified setup can make trading smoother and cheaper for users, but only if those protections are clearly defined.

Without them, it warned, the industry risks moving faster than investor safeguards can keep up.

This debate comes just days after the CFTC signed off on Polymarket’s move to operate as a U.S. exchange.

That approval signaled a shift in the agency’s approach and showed that regulators are paying closer attention to newer crypto trading models.

Coinbase also urged the CFTC to build a practical framework for DeFi derivatives.

The company said the DeFi market is growing quickly and needs regulations that match its scale and risk, rather than rules designed for an earlier era.

Coinbase Views Stablecoin Collateral as Massive Boost to U.S. Derivatives Market

The company also spotlighted stablecoins to be used as collateral in the futures market. Coinbase said stablecoins could reduce certain risks and give traders the ability to settle positions at any time.

It pointed to CFTC’s recent effort to test stablecoin collateral in the U.S. derivatives market as proof that the idea is gaining momentum.

In its letter, Coinbase argued that using stablecoins would strengthen market liquidity because settlement would no longer be limited to banking hours.

The company added that adopting this approach could help the United States stay competitive and take a leading role in the global derivatives industry.

Coinbase pointed out that its licensed subsidiaries already handle several key market roles, including futures commission merchant services and operating a designated contract market.

According to the firm, this experience gives it a clear view of how digital-asset markets actually work.

It also argued that any modern rules for crypto should line up with the long-standing standards set by the CFTC.

Coinbase Premium Turns Positive

In further crypto news, Coinbase Premium just turned positive, and that’s a notable shift.

For most of the month, the index sat deep in the red, showing that U.S. spot buyers weren’t really stepping in. You can see that long stretch of negative pressure across the chart.

Now the tone has changed. As Bitcoin lifted off its recent lows, the premium started to recover as well.

It didn’t happen all at once—buyers slowly came back, and the gap narrowed day by day. The move above zero is the clearest sign yet that U.S. demand is returning.

Traders pay attention to this for a reason. A positive premium usually means U.S. buyers are willing to pay slightly more than other markets, and that often appears when confidence improves.

It doesn’t guarantee a rally, but it does show that fresh spot interest is building again.

If this premium stays above zero, it adds another layer of support to Bitcoin’s recent bounce and hints that the U.S. market is waking up at the right time.