Former SEC Chairman Gary Gensler points out: Cryptocurrencies other than Bitcoin have a strongly speculative nature

As the year-end approaches, Gary Gensler, the former head of the SEC (U.S. Securities and Exchange Commission), expressed candid views on the cryptocurrency market to mainstream media. His remarks serve as an important indicator of how regulatory authorities assess the overall nature of digital assets from their standpoint.

According to Gary Gensler, the entire digital asset market is characterized by high risk and volatility, and market participants are forced to invest in an extremely turbulent environment. The majority of digital assets are perceived to have a strongly speculative nature, with rapid price fluctuations occurring daily.

Speculativeness of Cryptocurrencies and Market Volatility

The environment surrounding digital assets differs significantly from traditional financial products. It is highly sensitive to changes in market sentiment and news cycles, making rapid price swings more likely. Gensler particularly notes that this tendency is more pronounced in altcoins compared to Bitcoin.

For market participants, especially individual investors, such high volatility presents both opportunities and substantial risks. From a regulatory perspective, assets with these characteristics require strict oversight and investor protection frameworks.

Why Bitcoin is Treated as a Special Case

Interestingly, Gensler’s remarks highlight that Bitcoin is given special treatment. Amid the overall speculative nature of the market, Bitcoin holds a different position.

This exception is likely due to Bitcoin’s maturity, liquidity, market size, and relative price stability. Unlike altcoins and emerging projects, Bitcoin has gained a certain level of credibility in the financial markets. Based on this background, Bitcoin is considered relatively safer among speculative assets.

Gensler’s statements exemplify how regulatory authorities evaluate the cryptocurrency market in a layered manner, which could influence future policy development.