Gensler's View on the Current Crypto Market
Former US Securities and Exchange Commission Chair Gary Gensler has reiterated a warning he consistently delivered during his tenure, stating that most cryptocurrencies continue to be "highly speculative." In a recent interview with Bloomberg, Gensler distinguished Bitcoin from the broader cryptocurrency market, emphasizing that thousands of tokens do not possess the financial characteristics that investors should anticipate from regulated assets. He described Bitcoin as being "comparatively closer to a commodity," but stressed that the majority of other tokens do not offer "a dividend" or "usual returns." Gensler characterized the current market cycle as a repetition of themes he highlighted while in office, arguing that the global interest in crypto does not address the fundamental question he considers essential: what truly underlies these assets. 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… The investing public just needs to be aware of those risks."
Investor Takeaway
Gensler's Enforcement Record and the Crypto Debate
During his leadership of the SEC from April 2021 to January 2025, Gensler oversaw a period marked by numerous enforcement actions against exchanges and platforms that offered yield, staking, or token-issuance programs. Critics argued that he applied securities regulations too broadly, while supporters maintained that he enforced existing laws as written. One of the most controversial actions was the SEC's lawsuit against Coinbase, which accused the company of operating as an unregistered exchange, broker, and clearing agency, and of offering an unregistered staking-as-a-service product. Kraken also faced enforcement, leading to the shutdown of its US staking program and a $30 million penalty. These cases played a crucial role in shaping the regulatory environment for cryptocurrency development during his tenure. Industry groups characterized this period as one of stringent oversight, citing lawsuits, settlement demands, and public warnings. For Gensler, these actions were consistent with his belief that most tokens fell under securities law and therefore should adhere to the same disclosure standards as publicly traded companies.
Crypto as a Political Battlefield
When questioned about the political tensions surrounding cryptocurrency, including references to the Trump family's involvement in the sector, Gensler rejected the notion that crypto oversight is a partisan issue. He stated, "No, I don’t think so." He described the matter as being centered on fundamental capital-markets rules rather than party affiliations. "When you buy and sell a stock or a bond, you want to get various information," he said, adding that retail investors deserve "the same treatment as the big investors." He framed this principle as the bedrock of fairness in US markets, a point he consistently made throughout his chairmanship. This comment follows years of friction between policymakers, with some Republicans asserting that the SEC pursued an anti-crypto agenda and Democrats advocating for enhanced consumer protections.
Investor Takeaway
Gensler on ETFs and Industry Centralization
Gensler commented that the expansion of cryptocurrency ETFs aligns with a historical pattern in finance. "Ever since antiquity… [finance] goes toward centralization," he observed, noting that it is not uncommon for an asset class that originates in a decentralized form to eventually gravitate towards products managed by large intermediaries. During his time at the SEC, the approval of the first US Bitcoin futures ETFs marked a significant connection between crypto trading and established market infrastructure. Gensler pointed out that investors already have access to gold and silver through ETFs, describing the convergence of crypto and traditional markets as a continuation of this established trend. His latest remarks maintain the consistent distinction he has drawn: Bitcoin is in one category, and the rest of the market is in another. He reiterated that the majority of tokens still lack the financial characteristics that investors typically rely on when evaluating assets.
Broader Impact of Gensler's Comments
Even after leaving office, Gensler's perspective continues to shape how courts, compliance departments, and institutional investors assess cryptocurrency risk. The classification of Bitcoin as being closer to a commodity remains a prominent theme, and the SEC's stance on altcoins during his leadership continues to influence policy discussions. With numerous lawsuits ongoing and ongoing debates surrounding ETFs, Gensler's views are likely to continue resonating within regulatory and market conversations. His core message, consistent with his SEC tenure, is that Bitcoin stands apart, and most other tokens represent a different category entirely.