Former SEC Chair Gary Gensler Advocates for Bitcoin, Dismisses Other Cryptos

Gary Gensler, after stepping down as SEC chair, asserts Bitcoin’s strength while dismissing other cryptocurrencies as mere sentiment-driven assets. His recent statements reflect a shift in SEC enforcement strategies, distancing from litigation against companies like Coinbase and Kraken. Gensler emphasizes Bitcoin’s unique nature akin to that of precious metals, advocating for its singular role in the crypto space.

Gary Gensler, former chair of the SEC, has re-entered the public arena with a recent interview on CNBC, marking his first comments since his resignation on January 20. He characterised Bitcoin as a robust asset while dismissing most other cryptocurrencies as speculative “sentiment-driven memes,” highlighting the shift in the regulatory approach of the SEC under acting chair Mark T. Uyeda, which is now distancing itself from Gensler’s prior enforcement actions.

During the interview, Gensler stressed the overwhelming reliance on sentiment within the crypto market, stating that most tokens lack fundamental value, with only Bitcoin enjoying strong global interest. He compared Bitcoin’s enduring nature to that of precious metals, acknowledging that only a few metals, like gold, maintain human fascination, while thousands of tokens lack similar appeal intrinsic to Bitcoin.

The SEC has recently shown a significant change in strategy by ending ongoing litigation against companies such as Coinbase and Kraken, which previously faced scrutiny initiated under Gensler’s leadership. Following notable victories for Ripple Labs, wherein the SEC abandoned certain appeals regarding XRP sales, the regulatory landscape has evolved, raising questions about the definition of crypto assets in terms of security law in the US.

Gensler’s legacy includes overseeing the opening of over 150 crypto-related cases, advocating for Bitcoin’s classification as a unique asset, distinctly separating it from the myriad of other tokens. His recent commentary appears to solidify his position as a Bitcoin maximalist, reinforcing the belief that Bitcoin remains the sole cryptocurrency capable of functioning as non-sovereign money, with current market valuation for Bitcoin standing at $84,178.