Gary Gensler: Most Crypto Assets Remain Volatile and Lack Real Value

• The former head of the SEC called most tokens high-risk.
• Gensler believes that only bitcoin stands out from the market.
• He warned of volatility and lack of real value in altcoins.

Former SEC Chairman Gary Gensler said in an interview with Bloomberg that most crypto assets remain speculative assets with no sustainable value or clear purpose. According to him, investors often buy tokens solely in the hope of price growth.

As the former SEC chief notes, this makes the market particularly vulnerable to sharp fluctuations. Gensler emphasized that only bitcoin stands out among digital assets.

This asset, in his opinion, is the most recognized and enjoys a relatively high level of trust. He allowed that regulated stablecoins may have a special place, but most altcoins remain dependent on short-term hype.

The former Commission chairman recalled that many projects, especially new or meme-themed ones, frequently show dramatic growth and then lose up to 80-90% of their value. Such dynamics, Gensler said, make participation in such markets risky and require investors to carefully evaluate fundamentals.

This position is in line with his views of the SEC’s leadership period from 2021 to 2025, when the regulator increased its control over crypto platforms and initiated a number of investigations. Gensler noted that the previous risks have not disappeared anywhere and remain relevant even against the backdrop of growing interest in digital assets.

He also touched on the impact of institutionalization on market behavior. In his opinion, the approval of exchange-traded crypto products and the integration of digital assets into the financial system are gradually bringing them closer to the dynamics of traditional securities.

In parallel, Gensler pointed out that the political context does not change the key fact that the primary objective of regulators is to support market integrity. Investors, he said, should take into account the high volatility of the industry and remain cautious when choosing assets.