SEC Chairman Paul Atkins Says Regulators Should Not Panic Over Falling Crypto Prices

Rather than reacting to market declines, Paul Atkins reported that regulators are prioritizing crypto frameworks over price stabilization efforts.

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

These remarks signal the SEC’s intention 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 face market slowdown with policy agenda

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

“It’s not the role of the regulator to worry about day-to-day market fluctuations,” Atkins said. “People who focus only on the constant increase in numbers are likely to be disappointed.”

These comments come as crypto markets face sustained pressure, with Bitcoin trading near $66,000 at the time of writing and analysts eyeing the $60,000 support level as a potential next test. Meanwhile, Ripple’s XRP fell almost 5% to $1.40 and Ethereum (ETH) fell back below $2,000. Some market observers warned of further downside, with Bloomberg Intelligence strategist Mike McGlone reiterating a bearish $10,000 forecast for Bitcoin just days before Atkins’ speech.

But rather than 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 program includes developing frameworks for the classification of crypto assets, developing rules for trading tokenized securities on automated market makers, and issuing guidelines on the custody of non-security assets like stablecoins.

Building a framework beyond market cycles

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

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For her part, Commissioner Peirce presented the current slowdown as an opportunity for manufacturers. “Dropping numbers 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 create things that people want and need,” Peirce said. “It’s the best way to get support from both sides in Washington.”

Atkins stressed that the SEC’s rules should not be a barrier to innovation, encouraging developers to “come 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 allow market participants to experiment while the agency develops permanent rules.

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