Former SEC Chairman Gensler warns again: "Digital assets are risky assets."

Source: BlockMedia Original Title: Former SEC Chairman Gensler: “Look! Digital assets are risky assets” — another warning Original Link: https://www.blockmedia.co.kr/archives/1014779 Gary Gensler, former Chairman of the US Securities and Exchange Commission (SEC), continues to issue warnings about the digital asset market. In a recent interview with Bloomberg, he emphasized that the majority of digital tokens remain speculative, highly volatile, and are assets that individual investors do not fully understand. This stance contrasts with the increasingly pro-digital asset sentiment among the Trump administration and some politicians.

Former Chairman Gensler said, “Look, these are risky assets. The public in the US and around the world are fascinated by digital assets, but these are very speculative and highly volatile assets.” He reiterated that, except for Bitcoin and stablecoins backed by the dollar, most tokens lack real value drivers such as cash flow, dividends, or intrinsic utility. This can be interpreted as a warning not to mistake flashy headlines or political discourse for reliable investments.

Gensler’s position is consistent with the warnings he issued multiple times during his tenure as SEC Chairman. He pointed out that thousands of tokens carry inherent risks and have a high potential for being abused in fraud schemes. He specifically mentioned the collapse of Sam Bankman-Fried’s digital asset empire as a cautionary example for investors.

The Importance of Digital Asset ETFs and Regulation

Despite the recent attention on Bitcoin ETFs (Exchange-Traded Funds), Gensler pointed out an irony in the digital asset market. While digital assets claim decentralization, the market is actually moving toward more ‘centralized’ methods such as ETFs. He compared this to gold and silver investment methods, explaining that investors desire accessibility, regulation, and reassurance, making such changes natural.

Former Chairman Gensler stressed that regulation and innovation are not mutually exclusive, and that protecting investors is actually essential for the long-term survival of the digital asset sector. Ultimately, he argued that regulation is not an obstacle to innovation, but the foundation that makes it sustainable.