Former SEC Chair Gary Gensler is still sounding the alarm for anyone diving into crypto too quickly.
In a new interview with Bloomberg, Gensler doubled down on his long-standing view: most cryptocurrencies—other than Bitcoin and dollar-backed stablecoins—are highly speculative and carry serious risks.
Crypto is still a “risk asset”
Gensler didn’t sugarcoat it.
“Crypto is a risk asset,” he said. He explained that people around the world are drawn to digital tokens, but the majority of them are still volatile, unpredictable, and not fully understood by everyday investors.
He repeated a point he’s been making for years: outside of Bitcoin and stablecoins, most tokens don’t have real value drivers. They don’t generate cash flow, pay dividends, or offer clear, lasting utility. And no amount of political excitement or ETF momentum changes that.
Familiar warnings from his SEC days
Gensler’s tone mirrors the caution he shared throughout his time leading the SEC, when he highlighted scams, unregistered securities, and major collapses—like Sam Bankman-Fried’s downfall—as proof of how risky the space can be.
Even with Bitcoin ETFs becoming more popular, Gensler noted the irony: crypto was built on decentralization, yet the biggest growth is happening through centralized products like ETFs. He compared it to how investors treat gold or silver—they still prefer regulated, convenient, familiar investment vehicles.
Regulation and innovation can still go together
Despite constant tension between the crypto industry and regulators, Gensler insists that strong oversight doesn’t kill innovation. In his view, protecting investors is the foundation that allows any new financial market to survive and grow.
His message to the public remains the same: stay cautious, stay informed, and don’t mistake hype for safety.
