Renowned trader Peter Brandt has issued a grave warning regarding the future of crypto staking, labeling it as “the most catastrophic events yet to occur in the crypto world.” He predicts that the sector will experience significant disasters, bankruptcies, and personal financial losses. Brandt’s warning comes in the wake of the U.S. Securities and Exchange Commission’s (SEC) approval of spot ethereum exchange-traded funds (ETFs).
In a post on social media platform X, Brandt expressed his view on the matter, stating, “The biggest disasters in the crypto world will be linked to staking (and those who engage in it). The bankruptcies and financial ruin that will result from staking will be mind-boggling.” He further elaborated on how he envisages the end of crypto staking, explaining, “Staking involves owning, borrowing, or leveraging an asset such as ETH or SOL, and lending it out for revenue, i.e., interest. This will eventually attract the attention of central banks and government treasuries, leading to regulatory control and the eventual demise of staking.”
This isn’t the first time Brandt has expressed concern over this crypto activity. Earlier this month, he warned of an aggressive attack on crypto staking by the SEC, predicting a “bloodbath” in the process. He firmly believes that crypto staking is “illegal as hell.”
Brandt’s warning comes on the heels of the SEC’s approval of eight spot ethereum ETFs, a decision that surprised many in the crypto industry who had anticipated a rejection. Previously, the SEC had not engaged with issuers, but suddenly began interacting with them and requested expedited resubmissions of filings.
While the SEC has given the green light to spot ethereum ETFs, it has not clarified whether ETH should be classified as a security or a commodity. SEC Chairman Gary Gensler has consistently avoided answering questions about ether’s classification, even when asked by Congress. Recent court documents have revealed that the SEC initiated an official investigation into ETH as a potential security over a year ago.
What are your thoughts on Peter Brandt’s warning? Do you believe that staking will be the most disastrous aspect of crypto? Let us know in the comments section below.
