Gensler Warns of 'Speculative' Bitcoin Risks as Atkins Prepares Jan 2026 Crypto Exemption

Source: CoinEdition Original Title: Gensler Warns of ‘Speculative’ Bitcoin Risks as Atkins Prepares Jan 2026 Crypto Exemption Original Link: https://coinedition.com/gary-gensler-bitcoin-is-still-a-casino-even-with-etfs/ Former SEC Chair Gary Gensler issued a sharp reminder of the “speculative” nature of digital assets this week, contrasting his risk-first philosophy with the deregulation agenda of his successor, Paul Atkins.

In a wide-ranging interview, Gensler described Bitcoin and most crypto tokens as high-risk instruments lacking traditional fundamentals, while also weighing in on the broader political debate surrounding digital assets and the resilience of U.S. market infrastructure.

His remarks come at a moment when the SEC is preparing to implement an innovation exemption designed to ease the compliance burden for crypto firms, effective January 2026.

Gensler Highlights Bitcoin Risks and Market Structure Concerns

During the discussion, Gensler said Bitcoin’s price behavior continues to reflect high volatility and speculative trading. He added that thousands of non-stablecoin crypto tokens provide no dividends or conventional returns, stating that investors should understand the risks before entering the market.

While asked about the growing political attention around digital assets, he said the issue should not be viewed as partisan, noting that the U.S. benefits from capital-market rules focused on transparency and equal treatment for investors.

Gensler also addressed last week’s outage at the Chicago Mercantile Exchange, describing the incident as a cooling-system failure at a third-party data center that halted operations for roughly ten hours on Thanksgiving evening. He said major exchanges and clearinghouses remain important but pointed out that regulators routinely examine such events for lessons learned.

Atkins Advances Innovation Exemption After Leadership Transition

Following Gensler’s departure, current SEC Chair Paul Atkins has outlined a markedly different agenda for crypto oversight. Atkins confirmed that the agency’s innovation exemption, first proposed in July 2025, will take effect in January 2026. The rule will allow crypto projects to issue tokens without full SEC registration and is intended to accelerate product development, particularly in the decentralized finance sector.

Atkins noted that the exemption’s rollout was delayed by a government shutdown that spanned October and November, but said the agency is now prepared to finalize the framework. He stated that the objective is to give developers room to test technologies while providing regulators a direct view of emerging models.

Regulatory Environment Shifts as ETFs Launch and Cases Close

Since Atkins assumed office, multiple crypto-focused ETFs have entered the market, and several enforcement actions initiated under the prior leadership have concluded. The agency has described these developments as part of a broader regulatory reset aimed at clarifying expectations after several years of industry disputes.