Bitcoin is a ‘Highly Speculative, Volatile Asset,’ Says SEC’s Gensler
Securities and Exchange Commission Chair Gary Gensler elaborated on the agency’s groundbreaking move to greenlight a Bitcoin ETF in an interview with CNBC recently. Gensler said the approval stems from consideration of a new court ruling while cautioning retail investors on crypto market risks.
Speaking with CNBC’s Andrew Ross Sorkin, Gensler pointed to a recent court decision as the impetus for allowing the long-awaited Bitcoin ETF after years of rejections by the SEC.
- Gensler cited respect for the legal system and courts as the reason the SEC shifted its stance to finally approve a Bitcoin ETF.
- SEC Chair said the ETF approval is limited to Bitcoin based on its status as a commodity.
- Warned investors that crypto markets remain highly volatile and speculative, reiterating Bitcoin’s use for illicit financial activity.
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The ETF green light comes as the SEC battles crypto firms over which digital assets qualify as securities amid questions about the commission’s oversight authority. Gensler argued Bitcoin constitutes a non-security commodity while rebutting commentary that framed the ETF as harmful to innovation.
Gensler says Bitcoin is a speculative asset
“Investors, I think, should be aware that the underlying asset is a highly speculative, volatile asset, and amongst its use cases is really for illicit activity, money laundering, and sanctions, and ransomware, and the like, said Gensler. He also added that it is a speculative, volatile store of value.
Gensler stuck to his longstanding position that the crypto ecosystem harbors rampant conflicts and fraud. He estimated that most tokens qualify as securities under the law, thus requiring platforms that list them to register with regulators.
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For now, the SEC chose to act based on an apparent legal obligation, not a policy preference. With the ETF decision focused wholly on Bitcoin, Gensler reiterated that investors should still approach the asset class with extreme care.
