$BTC The former SEC chairman, Gary Gensler, reiterated his long-standing caution regarding cryptocurrencies, describing most of the market as "highly speculative" in a new interview with Bloomberg.
While he acknowledges that Bitcoin is comparatively closer to a commodity, he argued that most crypto-assets lack dividends, cash flows, or conventional fundamentals, reports Cointelegraph.
Mr. Gensler stated that public enthusiasm does not change the underlying economic reality and urged investors to question what truly underpins thousands of tokens. He emphasized that only stablecoins pegged to the US dollar fall into a different category, although they still require careful scrutiny. His message echoes the warnings he has repeatedly issued during his tenure, suggesting that the current market turbulence aligns with the risks he previously highlighted. According to Mr. Gensler, retail investors should remain aware of the structural uncertainty that prevails in much of the sector.
Sector reaction persists after a period of aggressive SEC enforcement
Mr. Gensler's term from 2021 to 2025 has been marked by intense regulatory oversight and a broad enforcement program targeting exchanges, staking programs, and token issuers. Under his leadership, the SEC sued Coinbase for operating as an unregistered exchange, broker, and clearing agency, and for offering staking services considered to be securities. Kraken was also forced to shut down its staking program in the US and pay a $30 million penalty.
These measures have sparked significant frustration within the crypto sector.
