Gary Gensler, the former head of the US Securities and Exchange Commission, has warned investors about the uncertain nature of most cryptocurrencies.
Speaking with Bloomberg on December 2, he described much of the crypto market as “highly speculative”, while making a clear distinction between Bitcoin and other tokens.
According to Gensler, Bitcoin
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He suggested that investors carefully consider what supports each token’s value. He stated that, outside of dollar-backed stablecoins, “you have to ask yourself, what are the fundamentals? What’s underlying it? The investing public just needs to be aware of those risks”.
Gensler explained that the excitement surrounding cryptocurrencies does not necessarily reflect genuine financial strength or sustainability.
He compared the current environment to earlier warnings he issued while in office, where he emphasized that popularity does not replace sound economic foundations.
When asked if the attention on crypto has become a political issue, Gensler rejected that idea. He said the discussion should focus on fair and transparent financial practices rather than party politics.
He highlighted that fairness means every investor, large or small, deserves access to the same information when buying or selling assets.
Recently, Federal Reserve Vice Chair for Supervision Michelle Bowman faced questions from Representative Stephen Lynch about her past comments on digital assets. What did Bowman say? Read the full story.
