- Gensler says most cryptocurrencies remain “highly speculative” and lack real fundamentals.
- His SEC tenure included major lawsuits against Coinbase and Kraken over registration violations.
- He maintains Bitcoin stands apart, while most tokens still face heavy regulatory skepticism.
Former SEC Chair Gary Gensler is back in the spotlight after renewing one of his strongest warnings about crypto in a new Bloomberg interview. Calling most digital assets “highly speculative,” Gensler argued that the majority of tokens still lack fundamentals, real returns, or even the characteristics investors expect from traditional financial assets. Bitcoin, he noted, sits slightly closer to commodity territory — but nearly everything else remains risky in his eyes.
Gensler Warns Investors About Token Fundamentals
During the interview, Gensler emphasized that the global fascination with cryptocurrencies doesn’t magically turn them into sound investments. Outside of stablecoins backed by US dollars, he questioned the underlying value of “thousands of other tokens,” asking investors to seriously reflect on what they’re actually buying. Many tokens, he noted, don’t offer dividends, yield, or meaningful utility — leaving retail participants vulnerable if sentiment collapses.
His tone echoed the same concerns he voiced during his time in office: hype does not equal fundamentals, and the market’s explosive growth doesn’t automatically make it sustainable.
A Look Back at Gensler’s SEC Tenure
Gensler served as SEC Chair from April 2021 to January 2025, overseeing some of the most aggressive enforcement actions the crypto industry has ever faced. Exchanges like Coinbase were sued for operating as unregistered broker-clearing agencies and offering unregistered staking services. Kraken was forced to shut down its US staking program entirely and pay a $30 million penalty. These moves made Gensler a polarizing figure — praised by some for investor protection, criticized by others for stifling innovation.
Even today, the industry still debates whether Gensler’s enforcement-first approach protected retail investors or simply pushed innovation offshore.
Politics, ETFs, and the Drift Toward Centralization
When pressed on whether crypto has become political — especially given the Trump family’s growing involvement — Gensler rejected the idea outright. He insisted the issue is about fairness in capital markets, not partisan divides. Investors buying stocks receive disclosures and protections; in his view, crypto participants should expect the same.
On ETFs, Gensler noted that financial systems have trended toward centralization “since antiquity,” so it’s no surprise that a movement born from decentralization has gradually integrated with traditional finance. During his term, the SEC approved the first US Bitcoin futures ETFs, tying crypto closer to mainstream infrastructure.
Though out of office, Gensler’s viewpoint still shapes how regulators, courts, and institutions draw the line between Bitcoin and everything else — with altcoins often ending up in the “speculative” pile.
