Former SEC Chair Gary Gensler, now a professor at MIT, has reiterated his critical stance on the cryptocurrency market in a recent interview. He stated that the majority of cryptocurrencies remain highly speculative and volatile, lacking intrinsic value or a clear purpose.
However, Gensler did acknowledge one prominent digital asset that he believes stands apart from the rest.
Gensler Repeats Crypto Risk Warning
In a recent Bloomberg interview, Gensler reiterated his long-standing concerns regarding the risks associated with cryptocurrencies. He articulated that many digital tokens do not offer dividends, possess genuine value, or demonstrate strong use cases. According to Gensler, most individuals acquire these assets with the sole expectation of price appreciation, classifying them as "highly speculative."
Gensler specifically identified Bitcoin and a select group of regulated stablecoins as exceptions, citing their greater trustworthiness and wider recognition. In contrast, he suggested that numerous altcoins, particularly smaller or meme-driven ones, achieve growth primarily through hype.
Some of these altcoins are launched with little more than a whitepaper and subsequently experience significant declines, often losing 80% to 90% of their value after a brief rally.
These pronouncements echo the position Gensler maintained during his tenure as SEC Chair from 2021 to 2025, a period marked by significant regulatory actions against cryptocurrency platforms.
Altcoins Growing But Still Riskier Than Bitcoin
Despite Gensler's cautionary remarks, the current cryptocurrency market is notably more mature than in previous years. Many leading digital assets now offer tangible use cases, including smart contract functionality, enhanced payment speeds, and substantial community adoption. Nevertheless, they continue to exhibit higher volatility compared to Bitcoin.
Prominent altcoins such as Ethereum, XRP, Solana, BNB, Cardano, and Chainlink benefit from robust liquidity, dedicated user bases, and in some instances, have even secured ETF approvals.
Concurrently, memecoins like PEPE, FLOKI, and TRUMP still largely rely on social media trends for their momentum. However, they are no longer considered mere experimental ventures.
Crypto Market Moves Beyond Old Rules
Gensler's warnings may still hold relevance given the market's vast array of tokens that lack demonstrable value or regulatory clarity. However, the landscape he once sought to regulate has undergone significant evolution.
Conversely, market participants like CryptoRus contend that Gensler's perspective is outdated. They point to the current reality where institutional investors hold crypto assets, brokers facilitate ETF trading, and Bitcoin's price movements are influenced by global economic trends rather than solely by hype.
Proponents of cryptocurrency argue that Gensler is attempting to address issues that the market has already moved past. They suggest that the industry continues to advance and grow independently of his pronouncements.