The U.S. Securities and Exchange Commission will not intervene in falling cryptocurrency markets, Chair Paul Atkins stated. Speaking at ETHDenver, Atkins and Commissioner Hester Peirce outlined a regulatory focus on establishing frameworks for crypto assets rather than reacting to price volatility.
U.S. Securities and Exchange Commission Chair Paul Atkins said regulators should not panic over declining crypto prices. He acknowledged the market downturn but dismissed short-term price action as irrelevant to the agency’s mission.
“It is not the regulator’s job to worry about the daily swings of the markets,” Atkins stated. He added that people focused only on prices rising will likely be disappointed. The remarks came as Bitcoin traded near $66,000, with other major assets like Ethereum falling below $2,000.
Atkins instead detailed initiatives under the joint SEC and Commodity Futures Trading Commission effort dubbed “Project Crypto.” The agenda includes creating frameworks for crypto asset classification and rules for tokenized securities trading on automated market makers. Guidance on custody for non-security assets like stablecoins is also planned.
Commissioner Hester Peirce framed the market drop as an opportunity for builders, noting some critics feel “Schadenfreude” over crypto’s struggles. “You have to build stuff that people want and need,” she argued, stating this is the best way to gain support in Washington. Atkins encouraged developers to engage with the SEC directly.
The agency plans an “innovation exemption” for limited trading of tokenized securities on decentralized platforms. This temporary measure with volume limits is designed to allow experimentation while permanent rules are developed. Atkins urged the audience to build meaningful products to transform criticism into shared success.
