Gary Gensler Warns of Altcoin Collapse, Backs Bitcoin | Image Source: dailyhodl.com
WASHINGTON, D.C., 16 April 2025 – US Securities Commission (SEC) Chairman Gary Gensler ended a two-month public silence with a provocative appearance in the CNCBC Squawk Box, offering his most direct comments even on the way to the cryptographic market. In a long 17-minute interview, Gensler endorsed Bitcoin’s long-term resilience while conducting a sober assessment of most other cryptomonedas, referring to them as speculative “signs of feelings” without a real economic base.
The time of Gensler’s comments could not be more striking. They come just as the SEC, under the presidency of performance Mark T. Uyeda, has begun to withdraw from several highly publicized actions that have defined Gensler’s regulatory legacy. Coinbase, Kraken and Ripple – all of whom had been attacked by the SEC during Gensler’s mandate – saw cases against them either fired or left to dissolve quietly. As the regulatory environment changes, Gensler’s maximalist bitcoin inclinations now seem more direct than ever before.
What Gensler said about Bitcoin vs. Alcoins?
Gensler has drawn a hard line between Bitcoin and the wide variety of alternative cryptomonedas, or altcoins. When asked if Bitcoin should be considered a separate asset class, Gensler assigned it to a precious metal – a comparison that he had previously avoided during his time at the office.
“There are only two or three precious metals that we really care about, like gold,” Gensler said. “I don’t think humans have a fascination with 10,000 or 15,000 chips even or sentimental over the years. “
In essence, Gensler emphasized that although Bitcoin may have a lasting interest throughout the world, the vast majority of cryptographic sheets are speculative in nature and do not have the basic foundations seen in traditional financial assets. “Nearly 99%, or perhaps even 100%, of this area is feeling,” he said, reinforcing the idea that most of the cryptographic market is powered by hype, not substance.
Why are these comments important now?
Gensler’s comments come at a crucial moment. Since its departure from the SEC in January, the Agency has quickly withdrawn several major enforcement measures that had previously symbolized its aggressive approach to crypt regulation. The cases against Coinbase and Kraken were withdrawn without further sanctions, and the long-term dispute against Ripple seems to end with a whip instead of a blow.
According to many sources, including Bitcoinist and U.Hoy, the SEC filed a joint motion on April 11 asking the Second Circuit to stop all appeals in the Ripple case, pointing an effective end to a four-year legal saga. This strategic retreat, led by the current ESA management, contrasts strongly with Gensler’s mandate, which saw the commission start or increase over 150 execution actions related to crypto-.
Has Gensler changed his air to Bitcoin?
Not exactly, but now he speaks more freely. While president of the SEC, Gensler was often criticized for what cryptographic defenders considered a hostile position. He regularly classified most tokens as securities and argued that the platforms that traded them should be registered with the SEC. However, after the start, you clarify what you see as the only viable digital asset: Bitcoin.
“Something like Bitcoin can persist for a long time,” Gensler said, “because there is a great interest for it for people all over the world. ”
Gensler even recognized Bitcoin’s approval for ETF trade in the United States, a regulatory advance that occurred under his supervision and helped validate assets among institutional investors. However, his scepticism towards the broader cryptographic landscape has only intensified, reinforcing his conviction that most of these chips are not built to last.
What is the economic argument behind the warning of Gensler’s feelings?
Gensler’s criticism raises a fundamental economic question: what do these assets support? Traditional financial instruments, stocks, bonds, commodities, are based on income, income, debt or supply and demand in the real world. On the contrary, many cryptographic chips are driven by communities, stories or buzzing social media.
“If it’s about feelings,” Gensler said during the interview, then usually those who don’t end well. This logic has a precedent. The point-com bubble of the early 2000s, stocks like GameStop, and the NFT accident of 2022 share the same characteristic: to invest emotionally without memory of foundations. According to Gensler, altcoins fall into this category.
Does the SEC support the Crypto Regulation?
Under the direction of Mark T. Uyeda, the SEC shows signs of recalibration of its execution position. The withdrawal of the Coinbase and Kraken cases was unexpected. Even more surprising is the decision not to appeal in the Ripple case, a legal battle that has become emblematic of the agency’s cryptographic strategy.
Gensler, while careful not to criticize his successor, acknowledged this change in an oblique manner. “I will move away from individual cases,” he said, but he reiterated that cryptographic issues are systemic and not legal. According to him, “the foundations are simply not there”
Therefore, while the execution may be in decline, the underlying thesis of the former president remains unchanged: the crypt – outside Bitcoin – is a playground for children at high risk with cunning. It remains to be seen whether this will affect future policies.
What are you doing? Does that mean for investors?
For retail and institutional investors, Gensler’s comments serve as a precautionary example. Although Bitcoin continues to attract long-term securities and institutional capital, most altcoins remain vulnerable to sharp changes in public sentiment. Investors pursuing coins or niche chips are likely to take more risks than they realize.
This is not just technical analysis or market time. It’s about understanding what you’re investing in. If an asset does not have a business model, no cash flow, no single use cases - just a viral Twitter wire or a disk hicup behind it - the Gensler warning applies.
Q: Does all cryptomonedas except Bitcoin condemned to failure?
A: Not necessarily, but Gensler creates the greatest will. According to him, without a solid foundation, the vast majority of chips are unlikely to have long-term power. In his opinion, Bitcoin was the exception due to global interest and perceived rarity.
Q: Why did the SEC leave the cases against Coinbase, Kraken and Ripple?
A: Although the SEC has not given detailed reasons, withdrawals suggest a strategic focus under the interim presidency of Uyeda. These movements indicate a possible change to regulatory clarity rather than control tactics.
Q: Did Gensler soften his position in the crypt?
A. Not at all. Anyway, it’s doubled. Although he is no longer in the office, Gensler freely expresses a vision that harmonizes with the Bitcoin maximalists – that Bitcoin is unique, and most other chips are fleeting experiences at best.
Q: What should cryptographic investors take from this?
A: Gensler’s message is clear: do your due diligence. Understand the foundations. Don’t invest in feeling. And if you bet on a coin by becoming the next bitcoin, the story isn’t on your side.
At the time of publication, Bitcoin (BTC) stands at $814,178, a new step in its volatile course. If this wave cements its digital gold status or indicates another speculative bubble, it is a debate for another day. But one thing is true: in Gary Gensler’s mind, it’s way above everything else.
Your last message? The environment is fading. The foundations are here. And only time will tell which fleas will survive the purging of public fascination.
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