Former SEC Chairman Gary Gensler has once again emphasized his view that most cryptocurrencies are risky. In a recent Bloomberg interview, he said Bitcoin is treated differently from other digital coins. While bitcoin is still volatile, he believes it has more credibility and a stronger standing compared to thousands of alternative tokens.

Gensler explained that the “crypto market” is full of speculation and described most tokens as “highly speculative, volatile assets,” meaning prices often move based on hype rather than real value.

He said Bitcoin is closer to a commodity, similar to gold, while most other tokens do not provide dividends, earnings, or any regular returns. As he put it:

His message to investors was simple: be careful, and understand the risks.

He repeated that thousands of cryptocurrencies have weak fundamentals, and people should think carefully before investing. He noted, “The investing public just needs to be aware of those risks.”

Bitcoin stands apart, according to Gensler, because it has been more widely accepted and better understood by regulators, unlike most other assets in the digital asset industry.

Gensler’s comments came at a time of major change in the industry. One of the biggest developments was Vanguard reversing its long-standing anti-bitcoin policy. The company now allows 50 million clients to trade bitcoin and other digital asset ETFs. This is a major shift for a firm that once rejected digital assets as unsuitable for long-term investment.

The market reacted very quickly. Bitcoin jumped around 6% as trading began, and trading volume in bitcoin ETFs reportedly reached $1 billion, an event nicknamed “The Vanguard Effect” by Bloomberg analysts.

Gensler noted that “Ever since antiquity, finance goes towards centralization,” even when systems start out decentralized. He said it is not surprising that bitcoin is slowly becoming part of the traditional financial system through ETFs, similar to how investors can trade gold and silver through exchange-traded funds.

Some people believe digital assets have become a political issue, especially with public attention involving the Trump family. But Gensler disagrees. He said this is not about Democrats vs. Republicans, it is about fairness and transparency in financial markets.

“When you buy and sell a stock or a bond, you want to get various information, and the same treatment as the big investors,” he said. He argued that fair access to information is “the fairness underpinning US capital markets.”

Across interviews and news reports, Gensler’s message stays the same: Bitcoin stands apart, but the crypto market is still risky. He believes most tokens have weak fundamentals and depend too heavily on speculation and hype. Bitcoin may be the only exception in his view, but even it remains volatile.