Gensler calls out crypto hype—again: Bitcoin aside, ‘it’s a risk asset’

Key Takeaways

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  Gary Gensler doubles down on skepticism, calling most cryptocurrencies (beyond Bitcoin and USD-backed stablecoins) speculative assets lacking fundamental value.
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  Investor caution is key, as Gensler warns that political narratives and ETF hype don’t reduce the underlying volatility or risk.
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  Regulation vs. innovation: Gensler maintains that protecting investors and fostering crypto innovation can coexist, despite ongoing sector mistrust.

Gensler's Stance on Crypto Assets

In a recent Bloomberg interview, he reminded the market that most digital tokens remain speculative, volatile, and poorly understood by retail investors—even as the Trump administration and politicians increasingly talk up the sector.

“Look, I think it’s a risk asset,” Gensler said. “And the American public and the worldwide public have been fascinated with cryptocurrencies, but it’s a highly speculative, volatile asset.”

He reiterated a long-standing refrain: outside of Bitcoin and dollar-backed stablecoins, most tokens lack real value drivers like cash flows, dividends, or intrinsic utility. In other words, don’t mistake flashy headlines or political narratives for a sound investment.

Gensler’s tone echoes warnings he issued throughout his SEC tenure, when he flagged thousands of tokens as risky and spotlighted frauds, including the collapse of Sam Bankman-Fried’s empire.

Regulation and Innovation

Even as Bitcoin ETFs gain traction, Gensler pointed out the irony: markets are gravitating toward “centralized” structures—like ETFs—despite crypto’s decentralized promise. He frames this as a natural evolution akin to gold and silver investing: investors want accessibility, regulation, and some reassurance.

Through it all, Gensler maintains that regulation and innovation aren’t enemies. Protecting investors, he argues, is a prerequisite for the sector’s long-term survival.