Ex-SEC Chair Gensler Renews Crypto Caution, Calls Most Tokens Risky Bets

What Did Gensler Say About Today’s Crypto Market?

Former US Securities and platform Commission Chair Gary Gensler has repeated a warning he delivered throughout his tenure: most cryptocurrencies still fall into a category he calls “highly speculative.” Speaking with Bloomberg on Tuesday, he separated BTC from the rest of the market but reiterated that thousands of tokens do not offer the financial characteristics investors should expect from regulated assets.

Gensler said BTC is “comparatively closer to a commodity,” but stressed that most tokens do not provide “a dividend” or “usual returns.” He framed the current market cycle as a repeat of themes he raised while in office, arguing that the global fascination with crypto doesn’t resolve the underlying question he considers essential: what sits behind these assets.

“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,” he said.

Investor Takeaway

How Does His Enforcement Record Fit Into Today’s Debate?

Gensler led the SEC from April 2021 to January 2025, a period defined by frequent enforcement actions against platforms and platforms offering yield, staking or token-issuance programs. Critics said he applied securities rules too broadly, while supporters argued he enforced existing law as written.

One of the most contentious moves came with the , accusing the firm of operating as an unregistered platform, broker and clearing agency, and of offering an unregistered staking-as-a-service product. Kraken also faced enforcement, shutting down its US staking program and paying a $30 million penalty. These cases assisted define the regulatory atmosphere that shaped crypto’s development during his tenure.

Industry groups described the period as one of strict oversight, pointing to lawsuits, settlement demands and public warnings. For Gensler, these were consistent with his view that most tokens fell under securities law and should meet the identical disclosure standards as public companies.

Is Crypto Becoming a Political Battlefield?

Asked about the political tensions surrounding crypto — including references to the in the sector — Gensler rejected the idea that crypto oversight is partisan. “No, I don’t think so,” he said. He described the issue as one centered on basic capital-markets rules rather than party lines.

“When you purchase and trade a stock or a bond, you want to get various information,” he said, adding that retail investors deserve “the identical treatment as the large investors.” He framed this as the foundation of fairness in US markets, repeating a point he made throughout his chairmanship.

The comment comes later than years of friction between policymakers, with some Republicans arguing that the and Democrats pushing for stricter consumer protections.

Investor Takeaway

What Did He Say About ETFs and the Industry’s Move Toward Centralization?

Gensler said the growth of ETFs in crypto fits a long pattern in finance. “Ever since antiquity… [finance] goes toward centralization,” he said, pointing out that it’s not unusual for an asset class that began in decentralized form to gravitate toward products linked to large intermediaries.

During his time at the SEC, the first US were approved, marking a key link between crypto trading and established market plumbing. Gensler noted that investors already access gold and silver through ETFs and described the convergence between as a continuation of that trend.

His latest remarks keep the familiar distinction: BTC in one bucket, the rest of the market in another. The majority of tokens, he said, still lack the financial traits investors usually rely on when assessing assets.

What’s the Broader Impact of His Comments?

Even out of office, Gensler’s view continues to influence how courts, compliance teams and institutional allocators assess crypto risk. BTC’s treatment as closer to a commodity remains a recurring theme, while the SEC’s posture toward altcoins under his leadership still shapes policy discussions.

With multiple lawsuits ongoing and ETF debates ongoing, Gensler’s stance will continue to echo through regulatory and market conversations. His message remains unchanged from his SEC tenure: BTC is one thing, and most other tokens are something else entirely.