Gary Gensler, former US Securities and Exchange Commission chair and current chairman of the cryptocurrency market has warned investors again about the dangers of cryptos. ” highly speculative” Bloomberg has released a brand new interview.
Bitcoins (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” You can also find out more about “usual returns.”
Gensler said that the current backdrop of the market is a reflection of the warnings he issued while in government, that public interest in cryptocurrencies does not equate with fundamentals.
“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”
Gensler and the industry’s backlash
Gensler was the SEC’s leader from April 17th, 2021 to January 20th, 2025. He oversaw an aggressive enforcement program that included lawsuits against major cryptocurrency intermediaries, and the belief that tokens were unregistered security.
Related: House Republicans to probe Gary Gensler’s deleted texts
The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.
Gensler was the president during his tenure. Coinbase was sued by the SEC Kraken was also forced to pay a fine for not being registered as a broker or exchange and offering a staking service. Kraken had to also comply with the law. shut its US staking program And pay a fine of $30 million.
Politicization of Crypto
Including references to cryptopolitization, the press has been pushed on this issue. Trump family’s crypto involvement The former chair of the Bloomberg Interviewer rejected the framing.
“No, I don’t think so,” He said it is more about the fairness of capital markets. “commonsense rules of the road,” The word “than” is used to describe the aforementioned. “Democrat versus Republican thing.”
“When you buy and sell a stock or a bond, you want to get various information,” The following are some examples of how to get started: “the same treatment as the big investors.” He explained that fairness is the foundation of US capital markets.
Related: Coinbase files FOIA to see how much the SEC’s ‘war on crypto’ cost
ETFs as a centralization trend
Gensler, a finance expert, said that ETFs are a good investment. “ever since antiquity… goes toward centralization,” So it is not surprising to see that an eco-system born decentralized, has now becomecentralized. “more integrated and more centralized.”
He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs The crypto market’s infrastructure was re-aligned with traditional markets after the approval.
Gensler’s comments are familiar: Bitcoin is in another bucket while the majority of other tokens, according to him, remain speculative, and lacking in fundamentals.
The framing he uses will continue even after he leaves office. It’ll be heard in the courts, compliance offices, and allocating committees that weigh BTC’s commodity-like nature against altcoins’ persistent regulatory caution.
Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise — Hunter Horsley
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Source: cointelegraph.com
