Gary Gensler says the entire crypto market, except Bitcoin, remains highly speculative

In an interview with Bloomberg, Gensler stressed that bitcoin stands apart from the rest of the market and is closer to a commodity, while most crypto projects offer neither dividends nor the types of returns associated with traditional securities.

He warned investors against mistaking the popularity of cryptocurrencies for genuine fundamentals. Gensler repeated a point he often made while leading the SEC: public enthusiasm for tokens does not mean those assets have a sound economic basis.

During his tenure at the SEC from April 2021 to January 2025, Gensler pursued an aggressive enforcement agenda against the crypto sector. His term included major lawsuits such as the case against Coinbase for operating as an unregistered exchange, broker, and clearing agency, and the action against Kraken, which was forced to shut down its US staking program and pay a $30 million fine.

Gensler dismissed claims that his approach to crypto regulation was politically driven, saying the SEC’s mandate centers on market fairness and equal access to information. He emphasized that investors in stocks and bonds receive the disclosures they need to make informed decisions, and that crypto assets should follow the same standards when they function as securities.

He also commented on the rise of centralized financial products in crypto. Gensler said the industry’s move toward ETFs and other integrated offerings is natural and reflects a long-standing trend toward financial centralization. He noted that the first bitcoin futures ETFs were approved during his tenure, tying the crypto market more closely to traditional financial infrastructure.

In his latest remarks, Gensler reiterated his long-held view: bitcoin stands alone as its own asset class, while thousands of other tokens — aside from dollar-backed stablecoins — should be viewed primarily through the lens of speculative risk. He said he expects his perspective to continue shaping regulatory approaches and the risk models used by funds assessing exposure to crypto assets.