Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has renewed his warnings to investors, slamming most of the cryptocurrency market as “highly speculative” in a new Bloomberg interview on Tuesday. Gensler led the SEC from 2021 to 2025, overseeing an aggressive enforcement agenda against the digital asset industry.
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The former chair carved out Bitcoin (BTC-USD) as standing apart, suggesting it is comparatively closer to a commodity. However, he stressed that the thousands of other tokens lack fundamentals, do not offer “a dividend,” or provide “usual returns,” cautioning the public about the risks.
Gensler Draws Line Between Bitcoin and Altcoins
Gensler emphasized that the public needs to ask important questions about the foundation of most tokens. He stated: “All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it…”
His latest comments draw a familiar line, reiterating his view that Bitcoin sits in a different bucket, while most other tokens remain speculative and light on fundamentals. This framing is consistent with warnings he made while in office that public fascination with cryptocurrencies does not equate to solid fundamentals.
The SEC Launched Aggressive Lawsuits against Major Crypto Exchanges
Gensler’s tenure was defined by an aggressive enforcement agenda that viewed many tokens as unregistered securities. This approach led to high-profile actions that drew the ire of the crypto industry.
Under his leadership, Coinbase (COIN) was sued by the SEC for allegedly operating as an unregistered exchange and clearing agency. Rival exchange Kraken was also forced to shut down its U.S. staking program and pay a significant $30 million penalty.
Gensler Rejects the Politicization of Crypto
Pushed on the politicization of the crypto issue, including its references to prominent political figures, the former chair flatly rejected the framing. He argued that the debate is less about “Democrat versus Republican” and more about capital markets fairness and applying “commonsense rules of the road.”
Gensler maintained that investors deserve the same protections and access to information as “the big investors” when they buy and sell a stock or a bond. He noted that the approval of the first U.S. Bitcoin futures ETFs during his tenure further tied parts of crypto’s plumbing to traditional, regulated markets.
Investors can track the prices of their favorite cryptos in real-time on the TipRanks Cryptocurrency Center. Click on the image below to find out more.
