Gensler Reasserts Bitcoin’s Unique Standing as Most Crypto Tokens Face Scrutiny

Former SEC Chair Gary Gensler rehashed the debate over digital assets in a Bloomberg interview, saying Bitcoin stands apart from the rest of the crypto market. He warned that most tokens still act as speculative bets with little support behind their valuations, setting a cautious tone for investors.

Ex-SEC Leader Highlights Ongoing Risks in Non-Bitcoin Tokens

Gensler explained that Bitcoin functions more like a commodity, while most other tokens still lack solid fundamentals or clear returns. He added that global excitement around crypto has often moved faster than careful analysis. And as such, this leaves many buyers exposed when markets turn volatile.

The former SEC chief urged investors to consider what underpins the value of non-Bitcoin tokens. According to him, only a narrow group of stablecoins tied to the US dollar can claim clear backing. 

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.

Gary Gensler

Everything else, Gensler said, raises questions about economic structure, disclosures, and durability.

The ex-SEC chair’s concerns primarily center around the following issues:

• Most tokens lack cash flows or rights linked to real economic activity.
• Market prices often depend heavily on speculation.
• Issuers rarely provide information comparable to public companies.
• Many trading platforms operate outside long-standing rules.
• Retail investors carry most of the downside when markets swing.

Gensler’s views are shaped by his time leading the SEC from 2021 to early 2025, a period marked by an assertive approach to crypto oversight. Cases against major trading platforms became hallmarks of his tenure. Coinbase faced allegations of operating as an unregistered exchange, broker, and clearing agency.

Kraken paid a $30 million penalty and shut its US staking service. Although industry groups argued that the actions created confusion, Gensler maintained they reflected basic expectations applied across capital markets.

Gensler Highlights Investor Protection as Crypto ETFs Gain Ground

Questions about political angles surfaced during the interview, including references to crypto interest within the Trump family. Gensler dismissed the notion that digital assets fall along partisan lines. He said the debate centers on fairness, adding that everyday investors expect the same protections as major institutions when buying stocks, bonds, or any asset offered to the public.

Attention later turned to exchange-traded funds. Gensler said financial systems tend to move toward central points of access over time. In his view, that shift makes the growing role of ETFs in digital assets unsurprising. During his leadership, US markets saw the approval of Bitcoin futures ETFs, bringing parts of crypto trading closer to traditional finance.

His remarks ended with a familiar message placing Bitcoin in its own category, supported by its structure and long trading history. He added that most other tokens still function as speculative instruments with uncertain footing. Even after leaving office, Gensler’s comments continue to draw attention across the crypto industry as market participants gauge how regulators view the crypto market.