Speculative cryptocurrencies: what you need to know
Introduction — The Core of the News and Why It's Dangerous
In a recent Bloomberg interview (12/02/2025), former SEC Chair Gary Gensler called the majority of cryptocurrencies "highly speculative," emphasizing the high risks for retail investors. He highlighted that only Bitcoin can be considered a commodity, while thousands of altcoins lack sufficient fundamental justification and represent potential financial traps.
This news resonated throughout the crypto community, especially against the backdrop of tightening SEC regulations. For investors, this means a growing risk of asset freezes, token delistings, and stricter requirements for AML screening. Gensler's public statements increase the likelihood of new investigations and lawsuits involving crypto projects, making this topic extremely relevant.
Situation Analysis — Details, Laws, Facts
What Gensler Said About “Speculative Cryptocurrencies”
Gary Gensler made it clear: the vast majority of tokens lack traditional yield or real utility in the economic system. “Bitcoin is a commodity; the rest are highly speculative assets,” he noted. This distinction increases pressure on altcoins, as they are more frequently classified as securities under the Howey Test.
The Role of the SEC and Tightening Regulation
The SEC uses the Howey Test to determine if an asset is a security. If a token meets the criteria (investment of money, common enterprise, expectation of profit from the efforts of others), it falls under securities laws. High-profile examples, such as the lawsuits against Ripple (XRP) and Coinbase, demonstrate how regulators can change the rules for market participants.
Interesting fact: The SEC lost Gensler's correspondence for the period from October 2022 to September 2023, which calls the transparency of regulatory processes into question. These gaps in documentation could lead to further investigations.
User Risks — Who Will Be Affected
Retail Investors
- The Threat: Market volatility can lead to rapid token devaluation, account freezes, asset delisting, and the total loss of investments.
- Example: If a token is frozen by an exchange or an address is blocked due to sanctions tags, you will be unable to withdraw funds.
Institutional Investors and Exchanges
- Compliance Resources: Exchanges are forced to follow strict AML/KYC standards, and issuing projects risk facing lawsuits.
- Risks in Institutional Transactions: Increased oversight can lead to reputational and financial losses.
DeFi Contracts and Issuing Projects
- What to Expect: Smart contract blocking, reduced liquidity, and loss of trust in platforms that do not comply with the law.
How to Protect Yourself — Practical Tips
Token Verification Checklist
Before purchasing any asset:
- Tokenomics: Look at how tokens are distributed, whether there are burn mechanisms, or a high level of inflation.
- Legal Clarity: Ensure there is public documentation (whitepaper, audits).
- Project Team: Research their reputation, experience, and links to real companies.
- Real Utility: Observe how actively the product is used and if it lives up to its promises.
Investment Strategies
- Limit Altcoin Exposure: For example, no more than 5% of your portfolio.
- Use Stop-Losses: Minimize losses in the event of a sharp price drop.
- Work with Liquid Instruments: Consider BTC or ETFs as lower-risk assets.
AML Verification of Wallets and Counterparties
- Purpose: To exclude interaction with “dirty” crypto or sanctioned addresses.
- How to do it:
- Check wallet history through services like Chainalysis or Etherscan.
- Identify suspicious transactions (mixers, multi-hop transfers).
- Ensure the counterparty is not on sanctions lists.
Conclusion
The term “speculative cryptocurrencies” points to a combination of high volatility, regulatory risks, and a lack of fundamental value in tokens. In such conditions, it is crucial to make informed investment decisions:
- Limit Risks: Reduce the share of speculative assets in your portfolio.
- Verify Everything: Conduct due diligence before investing, including AML checks.
- Plan Ahead: Have a risk management plan and consider tax implications. Subscribe for updates and follow the analytics to stay informed about the latest changes.