U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins, speaking alongside Commissioner Hester Peirce at the ETHDenver conference on February 18, 2026, stated that regulators should not panic over falling cryptocurrency prices. Atkins pushed back against calls for emergency intervention as Bitcoin (BTC) traded near $66,000, having fallen more than 28% in the prior 30 days, with Ethereum (ETH) down over 40% in the same period.
Atkins emphasized that the SEC's role is not to respond to daily market swings. "It is not the regulator’s job to worry about the daily swings of the markets," he said. "People whose only focus is on the number always going up are likely to be disappointed." Instead, he outlined the agency's intent to focus on structural rulemaking, offering a regulatory roadmap 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. Atkins noted the SEC has moved away from "regulation by enforcement," having dropped numerous cases and issued staff guidance on mining, staking, and meme coins.
Commissioner Peirce framed the market downturn as a building opportunity, stating, "You have to build stuff that people want and need. That is the best way to garner support on both sides of the aisle in Washington." Atkins encouraged developers to engage with the SEC, announcing plans for a temporary "innovation exemption" to allow limited trading of tokenized securities on decentralized platforms while permanent rules are developed.
The commissioners also addressed potential market structure legislation, with Peirce confirming the SEC had "provided technical assistance" on a bill that could shift significant regulatory authority over digital assets from the SEC to the CFTC. This potential transfer raises implementation questions, as the CFTC is currently understaffed, operating with only a single confirmed commissioner, Michael Selig.
