SEC Chairman Paul Atkins says regulators shouldn’t panic about falling crypto prices

Instead of reacting to market declines, Paul Atkins indicated that regulators are prioritizing crypto frameworks over price stabilization efforts.

US Securities and Exchange Commission (SEC) Chairman Paul Atkins has said regulators should not panic over falling crypto prices and resist calls for emergency intervention as Bitcoin (BTC) fell to $66,000.

The comments signal the SEC’s intention to focus on structural regulation rather than market volatility, providing a roadmap for tokenized securities while dismissing short-term price action as irrelevant to the agency’s mission.

Regulators are tackling the market decline with a policy agenda

Speaking at ETHDenver on February 18 with Commissioner Hester Peirce, Atkins recognized the recent market decline, but rejected the idea that the SEC should respond to price movements.

“It is not the regulator’s job to worry about the daily fluctuations in the markets,” Atkins said. “People whose sole focus is on continually increasing numbers are likely to be disappointed.”

The comments come as crypto markets face continued pressure, with Bitcoin trading near $66,000 at the time of writing, and analysts seeing the $60,000 support level as a possible next test. Meanwhile, Ripple’s XRP fell nearly 5% to $1.40, and Ethereum (ETH) fell below $2,000. Some market watchers have warned of more downsides, with Bloomberg Intelligence strategist Mike McGlone repeating a bearish $10,000 Bitcoin forecast just days before Atkins’ speech.

But instead of addressing price action, the SEC chairman 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 the classification of crypto assets, establishing rules for trading in tokenized securities on automated market makers, and issuing guidance on the custody of non-security assets such as stablecoins.

Building a framework that goes beyond market cycles

The SEC’s approach reflects a deliberate shift from the enforcement tactics of previous years. Atkins noted that the agency has already dismissed numerous crypto cases, ended what critics called “regulation by enforcement,” and issued staff guidelines on mining, staking and meme coins.

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For her part, Commissioner Peirce has presented the current recession as an opportunity for builders. “Numbers are going down is the mantra of the moment,” she said, noting that some critics are engaging in “Schadenfreude” about crypto’s struggles.

But she argued that regulatory clarity alone does not create value.

“You have to build things that people want and need,” Peirce said. “That’s the best way to gain support from both sides of the aisle in Washington.”

Atkins emphasized that the SEC’s rulebook should not hinder 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, intended to allow market participants to experiment while the agency develops permanent rules.

“Put your nose to the grindstone and work on building things that matter,” Atkins told the crowd. “This is how you transform Schadenfreude into Freudenfreude – the feeling of happiness we feel when others succeed.”