Laughs at what could be desired (7)
I believe the answer is:
'laughs at' is the definition.
(I've seen this before)
'could be desired' is the wordplay.
'could be' indicates anagramming the letters.
'desired' with letters rearranged gives 'DERIDES'.
'what' acts as a link.
(Other definitions for derides that I've seen before include "Ridicules" , "Laughs at" , "Mocks, scorns" .)