Veteran Trader Peter Brandt Warns of 'Biggest Disasters yet to Come in Crypto'

Veteran trader Peter Brandt has issued a stark warning about the future of crypto staking, calling it “the biggest disasters yet to come in crypto.” He predicts significant disasters, bankruptcies, and personal financial losses within the sector. His warning followed the approval of spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

Crypto’s ‘Biggest Disasters’ Yet to Come

Veteran trader Peter Brandt, a renowned figure in the trading community with over four decades of experience, has issued a dire warning about the future of crypto staking. Brandt wrote on social media platform X on Friday: “An opinion that will not have much appeal among ETH/SOL similar hound dogs.” He stressed:

The biggest disasters yet to come in crypto will be to staking (and those who think they are doing the staking). The bankruptcies and personal fortunes lost in the staking game will someday blow your mind.

In a follow-up post on X, he explained how he sees the end of crypto staking happening: “Staking = Owning/borrowing/leveraging an asset (ETH/SOL/name it) Lending it out for revenue (i.e.: interest) = Eventual involvement by CBs/govt treasuries = Regulatory authority over staking = End to staking.”

This was not the first time the veteran trader had cautioned about this crypto activity. Earlier this month, he warned of a full-scale U.S. Securities and Exchange Commission (SEC) assault on crypto staking, predicting that “it’s going to be a bloodbath.” He believes that crypto staking is “illegal as hell.”

Brandt’s warning came after the SEC approved eight spot ethereum exchange-traded funds (ETFs). This decision surprised many in the crypto industry, who had anticipated the regulator would reject spot ether ETFs this month. Previously, the SEC had not engaged with issuers, but suddenly began interacting with them and requested resubmissions of filings on an accelerated basis.

Although the SEC has approved spot ethereum ETFs, it has not clarified whether ETH is classified as a security or a commodity. SEC Chairman Gary Gensler has consistently avoided questions, including those from Congress, regarding ether’s classification. Recent court documents revealed that the SEC initiated an official investigation into ETH as a potential security more than a year ago.

What do you think about veteran trader Peter Brandt’s warning? Do you think staking will be the biggest disaster in crypto? Let us know in the comments section below. #Write2Earn