Gensler says Bitcoin stands alone while most crypto tokens face questions over fundamentals
In a recent interview, former U.S. Securities and Exchange Commission Chair Gary Gensler drew a sharper line than ever between Bitcoin and the rest of the digital-asset market, cautioning that thousands of tokens remain “highly speculative” and lack the foundations investors typically expect.
Gensler reiterated that Bitcoin behaves more like a commodity, noting that it does not promise dividends or issuer-driven returns. By contrast, he argued that most tokens fail to offer clear economic value—a concern he emphasized throughout his tenure at the agency.
“You have to ask yourself, what are the fundamentals? What’s underlying it?”he said, stressing that public enthusiasm does not replace underlying financial substance. “The investing public just needs to be aware of those risks.”
Crypto Regulation and Market Scrutiny
During his time leading the SEC, Gensler oversaw a sweeping enforcement push aimed at exchanges and token issuers that regulators alleged were operating outside existing securities rules. Actions against large platforms and staking programs signaled a stricter interpretation of how digital assets fit into U.S. market law.
Industry analysts say this regulatory posture continues to shape today’s compliance environment. Elena Brooks noted that “the legal framing introduced during that period still influences how institutions evaluate altcoin exposure.”
Centralization Trends and ETF Growth
Gensler also pointed to the financial system’s natural pull toward centralization. He said it was unsurprising that a technology built on decentralization now intersects heavily with traditional investment vehicles, including Bitcoin-linked ETFs.
Gensler’s latest remarks reaffirm a regulatory divide: Bitcoin in one category, and the broader crypto market in another, still wrestling with questions of transparency, structure, and long-term viability.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.