Gensler: Bitcoin's Global Interest Drives Its Endurance

Gary Gensler, the former chairman of the U.S. Securities and Exchange Commission (SEC), recently shared his insights on the cryptocurrency market in an interview. He attributed bitcoin's enduring presence to the widespread global interest in it, stating that with 7 billion people on the planet, there is a genuine and keen interest in bitcoin.

Gensler's comments came in response to inquiries about the crypto industry's reaction to the cessation of lawsuits and investigations that were initiated during his tenure as SEC chief from 2021 to 2025. Under his leadership, the SEC adopted a stringent approach to cryptocurrency regulation, launching numerous enforcement actions against exchanges, token issuers, and other cryptocurrency organizations.

While Gensler did not directly address the dismissal of these cases, he shifted his focus to broader trends within the cryptocurrency market. He emphasized that financial assets, including cryptocurrencies, are traded based on a combination of fundamentals and speculative sentiment. According to Gensler, the cryptocurrency market is almost entirely driven by sentiment, with very little fundamentals.

Gensler advocated for a thorough risk assessment of assets, suggesting that the primary focus should be on the fundamentals of the projects. He warned that many assets are primarily driven by sentiment, making them unsustainable and likely to lose value over time.

When asked if bitcoin should be categorized with other cryptocurrencies, Gensler drew an analogy to precious metals, highlighting bitcoin's unique position in the crypto world. He noted that humans have a special interest in a few precious metals like gold, implying that bitcoin holds a similar status.

Gensler believes that the vast majority of cryptocurrencies, especially those driven by trends, memes, or public sentiment, will not attract long-term interest. He predicts that only a few, like bitcoin, will endure over time. Despite his optimistic outlook on bitcoin, Gensler revealed that he does not personally own bitcoin or any other cryptocurrencies.

Gensler's remarks underscore the ongoing debate about the legitimacy and longevity of cryptocurrencies. While bitcoin has gained traction as a savings vehicle, many altcoins have yet to achieve the same level of acceptance. His insights provide a nuanced perspective on the future of the cryptocurrency market, emphasizing the importance of fundamentals and the potential for sentiment-driven assets to falter over time.