SEC Chairman Paul Atkins Says Regulators Shouldn’t Panic Over Falling Crypto Prices

Instead of reacting to market downturns, Paul Atkins signed regulators to prioritize crypto structures over price stabilization efforts.

US Securities and Exchange Commission (SEC) Chairman Paul Atkins said regulators should not panic over the fall in crypto prices, pushing back on calls for emergency intervention as Bitcoin (BTC) fell to $66,000.

The remarks reflect the SEC’s intention to focus on structural regulation rather than market volatility, providing a path for signaled securities while dismissing short-term price action as inconsistent with the agency’s mission.

Regulators Tackle Market Decline 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 changes.

“It’s not a regulator’s job to worry about the day-to-day volatility of the markets,” Atkins said. “People whose only focus is on the ever-increasing price are likely to be disappointed.”

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

But instead of dealing with price action, the Chairman of the SEC used visibility to outline a series of regulatory measures under “Project Crypto,” a joint effort with the Commodity Futures Trading Commission (CFTC).

The agenda includes the creation of frameworks for the classification of crypto assets, the creation of rules for the trading of tokenized securities in automated market makers, and the issuance of guidance on the custody of non-secured assets such as stablecoins.

Building a Framework Outside of Market Cycles

The SEC’s approach represents a deliberate shift from the enforcement tactics of years past. Atkins noted that the agency has already dropped many crypto cases, ended what critics called “coercive regulation,” and issued staff guidance on mining, staking, and meme coins.

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For his part, Commissioner Peirce positioned the current downturn as an opportunity for builders. “The numbers are going down is the current mantra,” he said, noting that some critics share in “Schadenfreude” over crypto’s struggles.

But he 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 get support from 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 “new exemptions” to allow limited trading of tokenized securities on established 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 the things that matter,” Atkins told the audience. “That’s how you turn Schadenfreude into Freudenfreude—the feeling of joy we get when others succeed.”