Coinbase has submitted detailed policy recommendations to the CFTC, advocating for clearer rules on derivatives, stablecoins, and DeFi to foster innovation and market safety in the evolving crypto landscape.
Coinbase has submitted detailed policy recommendations to the Commodity Futures Trading Commission (CFTC) as part of the agency’s ongoing review of crypto market regulations, responding to a request for feedback on the President’s Working Group Report on Digital Assets. The company’s proposals emphasise the need for clearer and more nuanced rules to facilitate innovation while mitigating risk within the rapidly evolving crypto ecosystem.
Faryar Shirzad, Coinbase’s Chief Policy Officer, shared highlights of the submission on X, underscoring the company’s advocacy for the regulation of derivatives, stablecoins, and unified crypto platforms. According to Coinbase, these platforms, which offer various crypto-related services in one place, can enhance efficiency and reduce costs for market participants. However, the company also called for robust conflict-of-interest safeguards to protect consumers. Coinbase argues that such protective yet innovation-friendly rules strike a vital balance between fostering growth and maintaining market safety.
The proposals come amid the CFTC’s recent landmark move permitting the prediction market platform Polymarket to operate as a U.S. exchange, signalling the regulator’s increasing involvement with novel crypto trading models. Coinbase suggested the CFTC should develop a pragmatic regulatory framework tailored for the burgeoning decentralized finance (DeFi) derivatives market, which currently lacks comprehensive oversight. The firm pointed out the rapid expansion of DeFi markets necessitates updated regulatory measures to ensure they align with traditional market standards.
A key recommendation from Coinbase is the acceptance of stablecoins as collateral in futures markets. The company argues that stablecoin collateral would strengthen market liquidity by enabling settlement around the clock, reduce counterparty risks, and enhance trading flexibility. This echoes the CFTC’s own recent interest in launching a stablecoin collateral initiative for the U.S. derivatives markets, demonstrating regulatory momentum in this area. Coinbase suggests that adopting stablecoins could reinforce the United States’ position as a leader in the competitive derivatives space.
Drawing on its extensive experience, Coinbase emphasised that its licensed subsidiaries already operate as futures commission merchants and designated contract markets, equipping the company with valuable insights into how digital asset markets function. The firm advocates for modern regulatory standards that align with longstanding CFTC criteria, supporting a principles-based framework that accommodates innovation while upholding safety and integrity.
Coinbase also praised the CFTC’s philosophy of testing new rules amid a changing market landscape, reflecting the agency’s adaptive regulatory stance. This is consistent with recent statements by CFTC Acting Commissioner Caroline Pham, who highlighted collaboration between the CFTC and the Securities and Exchange Commission (SEC) to bring clarity to crypto rules, especially amid ongoing jurisdictional discussions.
These regulatory debates are timely as Coinbase pushes for greater clarity and certainty in the legal status of crypto assets and trading activities. In January 2025, Coinbase formally petitioned the U.S. Court of Appeals to affirm that secondary crypto trades on its platform should not be classified as securities under the Howey test, seeking judicial guidance to settle regulatory ambiguities.
Beyond administrative actions, Coinbase has been active in urging legislative change. Earlier in 2025, Shirzad called on Congress to grant the CFTC full regulatory authority over spot cryptocurrency markets, an effort that aims to shift oversight from the SEC to an agency Coinbase views as better suited to supervise crypto derivatives and spot trading. This move is presented as a way to foster transparency, reduce regulatory confusion, and support innovation.
The regulatory environment for Coinbase is far from straightforward. The company has faced historic enforcement actions from the CFTC, including a $6.5 million penalty in 2021 for problematic conduct on its GDAX platform, reflecting the intensity of regulatory scrutiny in the space. Most recently, in February 2025, the SEC dismissed its civil enforcement action against Coinbase, a decision linked to the agency’s new Crypto Task Force aimed at reforming the regulatory framework for digital assets.
Meanwhile, the CFTC’s ongoing investigations include a subpoena to Coinbase for customer data related to Polymarket, indicating sustained regulatory examination into emerging crypto platforms.
In this rapidly shifting landscape, Coinbase’s policy submissions and legal initiatives illustrate its commitment to shaping the future regulatory framework for digital assets. The company’s approach, calling for clear, workable rules that protect consumers while promoting innovation, reflects broader industry concerns about maintaining the delicate balance between market dynamism and regulatory oversight. The outcomes of these discussions and legal processes will be pivotal in determining how digital assets integrate with the broader U.S. financial system in the years ahead.
- https://blocknewsmedia.com/coinbase-responds-to-cftcs-request-on-crypto-market-rules/ – Please view link – unable to able to access data
- https://www.cointelegraph.com/news/coinbase-asks-congress-grant-cftc-spot-market-authority – In February 2025, Coinbase’s Chief Policy Officer, Faryar Shirzad, urged Congress to grant the Commodity Futures Trading Commission (CFTC) full authority over spot cryptocurrency markets. This proposal aims to shift regulatory oversight from the Securities and Exchange Commission (SEC) to the CFTC, enhancing transparency and consumer protection in the crypto sector. Shirzad highlighted the need for clear regulations to foster innovation and reduce risks in the digital asset market. ([cointelegraph.com](https://cointelegraph.com/news/coinbase-asks-congress-grant-cftc-spot-market-authority?utm_source=openai))
- https://www.coindesk.com/policy/2025/01/22/coinbase-asks-u-s-appeals-court-to-say-on-platform-crypto-trades-arent-securities – In January 2025, Coinbase petitioned the U.S. Court of Appeals to determine whether crypto trading on its platform should be subject to securities laws. The company argued that secondary crypto transactions do not meet the criteria of the Howey test, which is used to define investment contracts. This legal action seeks clarity on the regulatory framework governing digital asset trading. ([coindesk.com](https://www.coindesk.com/policy/2025/01/22/coinbase-asks-u-s-appeals-court-to-say-on-platform-crypto-trades-aren-t-securities?utm_source=openai))
- https://www.coindesk.com/policy/2024/08/09/coinbase-takes-aim-at-cftcs-definition-of-gaming-in-proposed-prediction-market-rules – In August 2024, Coinbase responded to the CFTC’s proposed rules on prediction markets, challenging the agency’s definition of ‘gaming’. Coinbase contended that the definition was too vague and advocated for a contract-by-contract regulatory approach rather than broad categorisations. The company emphasised the positive economic impact of prediction markets and urged the CFTC to reconsider its proposed rules. ([coindesk.com](https://www.coindesk.com/policy/2024/08/09/coinbase-takes-aim-at-cftcs-definition-of-gaming-in-proposed-prediction-market-rules?utm_source=openai))
- https://www.coindesk.com/policy/2025/01/09/polymarket-s-customer-data-sought-by-cftc-subpoena-of-coinbase-source-says – In January 2025, reports emerged that the CFTC had subpoenaed Coinbase to obtain information about customer interactions with the prediction market platform Polymarket. Coinbase notified its customers that it might be required to share their data with the regulator, highlighting the ongoing scrutiny of digital asset platforms by U.S. authorities. ([coindesk.com](https://www.coindesk.com/policy/2025/01/09/polymarket-s-customer-data-sought-by-cftc-subpoena-of-coinbase-source-says?utm_source=openai))
- https://www.sec.gov/newsroom/press-releases/2025-47 – In February 2025, the SEC announced the dismissal of its civil enforcement action against Coinbase. The decision was influenced by the formation of the SEC’s Crypto Task Force, which is dedicated to developing a comprehensive regulatory framework for crypto assets. Acting Chairman Mark T. Uyeda stated that the dismissal would facilitate the Commission’s ongoing efforts to reform its approach to the crypto industry. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2025-47?utm_source=openai))
- https://www.cftc.gov/PressRoom/PressReleases/8369-21 – In March 2021, the CFTC issued an order against Coinbase Inc. for reckless false, misleading, or inaccurate reporting and wash trading on its GDAX platform. The order required Coinbase to pay a civil monetary penalty of $6.5 million and to cease and desist from further violations of the Commodity Exchange Act or CFTC regulations. This enforcement action underscored the CFTC’s commitment to maintaining integrity and transparency in digital asset markets. ([cftc.gov](https://www.cftc.gov/PressRoom/PressReleases/8369-21?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative appears to be original, with no substantial matches found in recent publications. Coinbase’s response to the CFTC’s request for feedback on crypto market regulations is a timely development, indicating high freshness. However, similar topics have been covered in the past, such as Coinbase’s previous responses to CFTC requests on 24/7 trading and prediction market rules. ([assets.ctfassets.net](https://assets.ctfassets.net/o10es7wu5gm1/3cwJsaIIGhVBPO2yzFk4bv/e4eabcf5501d43c0da1d341ba99a6ba7/Request_for_Comment_on_Trading_and_Clearing_Derivatives_on_a_24_7_Basis-1.pdf?utm_source=openai))
Quotes check
Score:
9
Notes:
The direct quotes attributed to Faryar Shirzad, Coinbase’s Chief Policy Officer, are not found in earlier material, suggesting they are original. No identical quotes appear in earlier publications, indicating originality.
Source reliability
Score:
7
Notes:
The narrative originates from Block News Media, a less well-known outlet. While it provides detailed information, the lack of widespread recognition raises questions about its credibility. Cross-referencing with more established sources is advisable.
Plausability check
Score:
8
Notes:
The claims made in the narrative align with known events, such as Coinbase’s previous interactions with the CFTC and its advocacy for clearer crypto regulations. The tone and language used are consistent with corporate communications. However, the lack of coverage by more prominent outlets warrants caution.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents original content with direct quotes from a company executive, suggesting a high level of freshness. However, the source’s limited recognition and the absence of coverage by more established outlets raise questions about its reliability. While the claims are plausible and consistent with known events, the overall assessment remains open due to these uncertainties.