2025 SEC Update: Gensler Warns of Highly Speculative Crypto Market, Except for Bitcoin

• Gensler reiterated that most cryptocurrencies are “highly speculative,” except Bitcoin, which he views as a commodity.
• His stance continues to face criticism from the crypto industry over the securities classification of tokens.
• He emphasized transparency and investor caution when evaluating any digital asset.

Former Chair of the US Securities and Exchange Commission (SEC) Gary Gensler is not tired of bringing the risks of cryptocurrencies to public attention. Most of the crypto market, according to him, is “highly speculative.” Speaking to Bloomberg recently, Gensler distinguished Bitcoin as a commodity, however, he emphasized that most tokens do not have any supporting factors. This warning cannot be more appropriate and timely for investors as a reminder to be cautious when dealing with the crypto market.

Gensler’s Record

While Gensler was the Chair of SEC, he was the head of an aggressive enforcement program which was followed by a series of lawsuits against significant crypto intermediaries.

The industry was not inactive, they fought against the actions that were very visible, like the lawsuit against Coinbase and the stop of Kraken’s US staking program. Gensler’s opinion that most token issuers are unregistered securities has caused many industry players to respond that it is a mistaken point of view.

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The Politicization of Crypto

Gensler denies that his stance on crypto is politicized and instead says it is about fairness in capital markets and “commonsense rules of the road.”

He put the focus on the necessity of transparency and fairness in the market by saying that investors need to be given the same information and treatment as big investors.

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ETFs and Centralization

Gensler argued that centralisation is an inherent nature of finance, and therefore, it shouldn’t come as a surprise that the crypto ecosystem is turning to be more integrated and centralised.

In this case, he implied that investors are already free to choose gold or silver via exchange-traded funds, and during his tenure, approval has been granted for Bitcoin futures ETFs.

Also Read: Hester Peirce: Crypto Self-Custody Is a Fundamental Right, SEC Signals 2026 Plans

The Future of Crypto

The evolution of the crypto market makes it a matter of necessity to take into account not only Gensler’s warnings but also the regulatory landscape.

Although the case of Bitcoin is that of a commodity, the other segments of the market are still considered highly speculative. Investors have to be extremely cautious and only after thoroughly assessing the fundamentals of a token should they make an investment.

Also Read: Revolutionary SEC Move: Innovation Exemption Unveiled for Crypto Enterprises in 2025