Laughs at what could be desired (7)
I believe the answer is:
derides
'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" .)