Former U.S. SEC Chair Gary Gensler has said Bitcoin occupies a distinct position in the digital asset landscape, describing most other crypto tokens as highly speculative and lacking clear fundamentals.
His remarks came during a Bloomberg TV interview, as major cryptocurrencies posted strong gains after several weeks of weak demand.
Bitcoin Highlighted as an Exception in a Risk-Heavy Sector
Gensler noted that global interest in cryptocurrencies remains high but warned that thousands of non-Bitcoin tokens still operate without meaningful underlying value. He clarified that his assessment does not apply to stablecoins backed by the U.S. dollar.
According to Gensler, Bitcoin remains the primary digital asset with a distinct profile, whereas the rest of the market continues to carry elevated volatility and structural uncertainty.
Oversight Focused on Market Integrity, Not Politics
In addition, Gensler addressed broader questions about the political tone surrounding crypto regulation. He rejected the notion that digital assets have become a partisan issue and refrained from commenting on President Donald Trump’s role in shaping market sentiment.
Instead, he emphasized that regulation must focus on protecting the resilience of U.S. capital markets. Thus, his view positioned crypto oversight as a structural responsibility rather than a partisan battleground.
ETFs Bring Crypto Closer to Traditional Finance
Gensler also commented on the growing influence of exchange-traded products (ETPs) on crypto trading behavior.
He added that he was not surprised that digital assets are beginning to resemble traditional financial markets. According to him, financial systems tend toward consolidation, even in sectors that promote decentralization, making greater integration a natural stage of market development.
Crypto Market Rallies After Weeks of Weak Sentiment
Gensler’s remarks came just as the global cryptocurrency market staged a strong rebound late Tuesday.
As of press time, Bitcoin regained the $93,000 level and posted a 7.6% jump in 24 hours, according to CoinGecko. The rally extended across major altcoins as Ethereum moved back above $3,000, rising 9.5%.
XRP climbed 10%, BNB advanced 8.2%, and Solana jumped 12.7%, signaling renewed confidence after weeks of muted activity.
Why Bitcoin and Crypto Are Pumping
Analysts attributed the rally to a combination of supportive signals. For instance, SEC Chairman Paul Atkins recently discussed plans for an “innovation exemption” designed to support digital-asset firms. Moreover, the Fed has ended quantitative tightening (QT).
Meanwhile, Vanguard announced it would allow crypto-focused ETFs and mutual funds to trade on its platform.
Now, Wintermute strategist Jasper De Maere said the market’s momentum reflects both sector-specific catalysts and broader gains across financial markets, thereby contributing to the strong upward move.
Some commentators like Tom Lee believe Bitcoin could retest its all-time high before the end of this year.
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