Former SEC Chairman Warns: Bitcoin Can Survive, Rest of Crypto Market Faces Doom
In a candid interview with CNBC, former SEC Chairman Gary Gensler made a striking claim: while Bitcoin may continue to exist as a digital asset akin to gold, most other crypto tokens are on the verge of collapse. He stressed that the current market is largely driven by emotion and crowd psychology, rather than financial fundamentals.
“Bitcoin can survive — there are 7 billion people in the world who know about it and care about it,” Gensler said. But he also warned that the remaining 10,000-plus tokens lack any intrinsic value and have no reason to exist in the long term: “If it’s all about belief and emotion, it’s going to collapse sooner or later.”
Gensler compared Bitcoin to gold—an asset that humans have sought for thousands of years—and expressed skepticism that investors would have the same affection for tens of thousands of tokens that are nameless or based on fads. He argued that digital currencies need to be based on viable economic models and real-world applications, rather than “memes” and social media hype.
Meanwhile, the SEC, under new Chairman Paul Atkins, is preparing for a period of change. Atkins told Congress that the agency would push for a clearer regulatory framework for digital assets that balances innovation and investor protection. “We need a coherent and principled approach—not bans and regulatory chaos,” he said.
Gensler also did not hesitate to criticize current US trade policy. Drawing on his past experience negotiating financial deals with China, he said the US’s constant renegotiation with multiple countries is creating uncertainty and undermining its global leadership. “You can’t renegotiate everything at once and expect your counterparties to trust you,” he added.
He also warned that the SEC is facing severe staff cuts—down 20% from its previous size—making it difficult for the agency to effectively monitor markets. “With the resources it has, it’s hard to control manipulation or insider trading,” he said, highlighting the risk of losing public confidence in the financial system if action isn’t taken.
Gensler’s strong comments reflect growing concerns among regulators about the crypto bubble, especially as the tokenization movement continues to attract billions of dollars a year without meaningful oversight.