DENVER, Feb. 18, 2026 — Paul S. Atkins outlined potential regulatory initiatives for digital assets, including an innovation exemption for tokenized securities and custody rulemaking for non-security crypto assets, during remarks delivered with Hester M. Peirce at ETHDenver, according to a speech transcript published by the U.S. Securities and Exchange Commission.
The speech, titled “Number Go Down and Other Schadenfreude,” was published by the SEC on Feb. 18, 2026.
SEC–CFTC coordination under Project Crypto
Atkins said the Commission will continue its regulatory work through “Project Crypto,” which he described as “now a joint initiative with the CFTC.” He referenced plans for harmonization and coordinated approaches between the agencies in areas of overlapping jurisdiction involving digital assets.
Innovation exemption for tokenized securities
Atkins said he expects the Commission and staff to consider an innovation exemption to facilitate limited trading of certain tokenized securities on novel platforms.
He described a possible framework under which trading volume could be limited, buyers and sellers subject to a whitelisting process, and temporary relief provided from certain regulatory requirements while the Commission evaluates whether to amend existing rules to accommodate such trading.
Investment contract framework and capital formation
The Chairman said the Commission and staff may consider a framework explaining how the SEC evaluates crypto assets that are subject to an investment contract, including how such contracts are formed and terminated.
He also referenced potential rulemaking proposals to establish “common-sense pathways” for raising capital in connection with the sale of crypto assets.
Custody rulemaking and transfer agent modernization
Atkins said the SEC may consider rulemaking on custody of non-security crypto assets, including payment stablecoins, by broker-dealers.
He further referenced transfer agent modernization rulemaking intended to accommodate the role blockchain technology can play in securities recordkeeping.
SEC actions over the past year
During the remarks, Peirce and Atkins also summarized actions the SEC has taken over the past year related to digital assets. They cited seeking written responses to questions covering a range of crypto topics and holding roundtables on issues including the definition of a security, trading, custody, tokenization, DeFi, and privacy.
They also referenced staff guidance documents and FAQs, cross-divisional statements outlining a taxonomy for tokenized securities, approval of exchange generic listing standards for crypto ETPs, and the issuance of staff no-action letters to certain projects.
The speakers further referenced the removal of certain prior staff guidance and the beginning of work on rulemaking, exemptive relief, and Commission interpretations aimed at forming a longer-term regulatory framework.
Remarks on market volatility
In response to questions about recent declines in crypto asset prices, Atkins said it is not the regulator’s role to focus on daily market swings but to ensure that market participants have the disclosures needed to make informed investment decisions.
Peirce referenced the phrase “Number go down” in describing market reactions and noted that regulatory clarity can create a conducive environment for building, while stating that regulation itself is not the source of asset value.
The remarks were published in transcript form by the SEC and reflect forward-looking regulatory considerations.
