Gensler Warns on Risky Crypto Market as Bitcoin Stands Out

Gensler says most crypto tokens lack fundamentals, while Bitcoin fits a separate regulatory profile with lower perceived risk.

He rejects claims of political influence in crypto oversight, saying regulation must protect broader U.S. market integrity.

Gensler notes ETFs now shape trading patterns as major altcoins grow, though he says volatility across the sector remains high.

Former SEC Chair Gary Gensler warned on December 3 during a Bloomberg TV interview that most cryptocurrencies still carry high risk, stating that thousands of tokens lack real fundamentals while Bitcoin holds a separate regulatory profile. His remarks came as major digital assets showed renewed strength after several weeks of weak demand, driving fresh attention to his long-held stance.

Bitcoin Seen as the Outlier in a Crowded Market

Gensler explained that global interest remains strong; however, he argued that most tokens continue without meaningful underlying support. He said Bitcoin fits closer to a commodity framework, according to his regulatory view, while many other tokens rely mostly on price expectations

He added that this assessment does not extend to U.S. dollar-backed stablecoins. This point set up his broader warning about speculative behavior that he claims still defines much of the market. He said many assets offer no dividends or clear purpose, and he described them as volatile. His comments repeated positions he held between 2021 and 2025, when he oversaw several enforcement actions.

Oversight Framed as Market Integrity, Not Politics

Building on that, Gensler addressed debates over political influence in crypto regulation. He dismissed claims that digital assets operate as a partisan issue and declined to comment on President Donald Trump’s role in shaping sentiment.

However, he said oversight must protect the strength of U.S. markets, stressing that regulatory focus stays on structural risks. This position aligned with his previous comments about long-term market stability.

ETFs and Market Growth

Gensler then noted that exchange-traded products are influencing trading patterns across the sector. He said he was not surprised that digital assets now resemble traditional markets due to natural consolidation.

This view linked to his recognition that the market continues growing, even as he maintains that many altcoins still show higher volatility. He pointed to ongoing growth in tokens with strong liquidity, including Ethereum, XRP, Solana, BNB, Cardano and Chainlink.

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