U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has said that regulators should not panic over falling crypto prices, pushing back against calls for emergency intervention as Bitcoin (BTC) slipped toward $66,000.
The remarks signal the SEC’s intent to focus on structural rulemaking rather than market volatility, offering a roadmap for tokenized securities while dismissing short-term price action as irrelevant to the agency’s mission.
Regulators Address Market Downturn With Policy Agenda
Speaking at ETHDenver on February 18 with Commissioner Hester Peirce, Atkins acknowledged the market’s recent slide but rejected the idea that the SEC should respond to price swings.
“It is not the regulator’s job to worry about the daily swings of the markets,” Atkins said. “People whose only focus is on the number always going up are likely to be disappointed.”
The comments come as crypto markets face sustained pressure, with Bitcoin trading near $66,000 at the time of writing, and analysts watching the $60,000 support level as a potential next test. Meanwhile, Ripple’s XRP dropped nearly 5% to $1.40, and Ethereum (ETH) fell back below $2,000. Some market watchers have warned of further downside, with Bloomberg Intelligence strategist Mike McGlone reiterating a bearish $10,000 Bitcoin forecast just days before Atkins’s speech.
But rather than address price action, the SEC Chair used the appearance to outline a series of regulatory initiatives under “Project Crypto,” a joint effort with the Commodity Futures Trading Commission (CFTC).
The agenda includes developing frameworks for crypto asset classification, crafting rules for tokenized securities trading on automated market makers, and issuing guidance on custody for non-security assets like stablecoins.
Building a Framework Beyond Market Cycles
The SEC’s approach reflects a deliberate shift away from the enforcement-heavy tactics of previous years. Atkins noted that the agency has already dropped numerous crypto cases, ended what critics called “regulation by enforcement,” and issued staff guidance on mining, staking, and meme coins.
On her part, Commissioner Peirce framed the current downturn as an opportunity for builders. “Numbers go down is the mantra of the moment,” she said, noting that some critics are engaging in “Schadenfreude” over crypto’s struggles.
But she argued that regulatory clarity alone does not create value.
“You have to build stuff that people want and need,” Peirce said. “That is the best way to garner support on both sides of the aisle in Washington.”
Atkins emphasized that the SEC’s rulebook should not be a barrier to innovation, encouraging developers to “come in and talk to us” and announcing plans for an “innovation exemption” to allow limited trading of tokenized securities on decentralized platforms.
The exemption would be temporary and include volume limits, designed to let market participants experiment while the agency develops permanent rules.
“Put your nose to the grindstone and work to build things that matter,” Atkins told the audience. “That is how you transform Schadenfreude to Freudenfreude—the sense of happiness we feel when others succeed.”
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