Atkins and Pierce Refuse to Panic: SEC Chooses Policy Over Reaction to Price Decline

In the face of volatility in the cryptocurrency market, two key U.S. regulators advocate a fundamentally different approach to oversight. Gary Gensler, head of the Securities and Exchange Commission, confirmed that the SEC does not intend to react to short-term price fluctuations but will instead focus on developing long-term regulatory frameworks. Alongside him, Commissioner Hester Peirce is pursuing the same line, seeing the current downturn primarily as an opportunity to develop truly meaningful technological solutions.

Regulators Choose to Ignore Volatility

At ETHDenver conference on February 18, 2025, Gary Gensler made a clear statement: the regulator’s task is not to worry about daily market fluctuations. His position sharply contrasts with the pressure often placed on authorities during market downturns.

“People whose only goal is for the number to always grow are likely to be disappointed,” Gensler noted, emphasizing that the SEC’s role goes beyond speculative price games. At the time of his speech, Bitcoin was falling toward $66,000, XRP was down nearly 5%, and Ethereum was pushing downward. Despite bleak forecasts from some analysts, including Bloomberg Intelligence’s prediction of BTC dropping to $10,000, regulators have not changed course.

Today, months later, Bitcoin has recovered to $70.92K (+3.34% in 24 hours), XRP is trading at $1.43 (+2.37%), and Ethereum remains above $2.17K, demonstrating market cycles and validating Gensler’s refusal to bet on short-term movements.

From Coercion to Innovation: Peirce and Gensler’s Paradigm Shift

Gensler and Peirce’s speeches at ETHDenver marked a departure from methods critics called “regulation through coercion.” The SEC has closed numerous crypto-related cases and issued guidance on mining, staking, and alternative assets.

Hester Peirce proposed a positive reframing: regulatory clarity does not create value in itself. “You need to create what people want and need,” she said. This call is directed at developers, whom Gensler and Peirce invite to dialogue: “Come and discuss with us.” Commissioner Peirce described the current downturn as an opportunity, not a catastrophe, noting that some critics are celebrating industry difficulties.

Project Crypto: Architecture for Tokenized Assets and a Decentralized Future

Instead of impulsive reactions to price movements, Gary Gensler presented an ambitious plan developed jointly with the Commodity Futures Trading Commission (CFTC). Project Crypto covers three key areas: creating classification frameworks for crypto assets, establishing rules for trading tokenized securities on automated trading platforms, and providing guidance on accounting for non-security assets, including stablecoins.

A particularly significant proposal is the “Innovation Exemption”—a temporary permission for limited circulation of tokenized securities on decentralized platforms. This solution will allow market participants to experiment while the SEC develops permanent rules. Gensler emphasized that regulation should not serve as an obstacle, and stakeholders should focus on creating truly meaningful technological solutions.

“Put in the effort and work on creating what truly matters,” Gensler told the audience. This stance symbolizes a shift from a paradigm of negative control to one of encouraging constructive development—a philosophy shared by Peirce as well.

Thus, the positions of Peirce and Gensler demonstrate a mature approach to regulation: recognizing that market cycles are inevitable, but prioritizing the long-term building of legal and technical infrastructure.