Benzinga – Veteran trader Peter Brandt has sparked a discussion within the cryptocurrency community with his recent remarks on X.
What Happened: On Thursday, Brandt predicted a severe regulatory crackdown on crypto staking, describing the future landscape as a “bloodbath.”
“If the crypto community is upset over the @SECGov treatment of $XRP, $ETH et al as securities, Prediction: Wait until the @USOCC @SECGov @USTreasury do a full assault attack over staking It’s going to be a bloodbath,” he wrote.
If the crypto community is upset over the @SECGov treatment of $XRP, $ETH et al as securities,
Prediction:
Wait until the @USOCC @SECGov @USTreasury do a full assault attack over staking
It’s going to be a bloodbathhttps://t.co/CnXEusSAvG
— Peter Brandt (@PeterLBrandt) May 9, 2024
Brandt’s comments reflect concerns over potential aggressive actions from not only the SEC but also the Office of the Comptroller of the Currency (OCC) and the U.S. Treasury.
See Also: Bitcoin, Ethereum, Dogecoin Trade Sideways, Trader Asks: ‘Does It Matter If You Buy Bitcoin At $62,000 Or
Why It Matters: Ethereum co-founder Joseph Lubin has accused the SEC of hampering the growth of the crypto sector. His company, Consensys, is embroiled in a legal battle with the SEC over Ethereum’s classification.
This aggressive stance by the SEC seems linked to the regulator’s concerns over the growing influence and capital within the crypto ecosystem, particularly following the approval of spot Bitcoin ETFs.
Amid these developments, there have been a series of legal challenges and regulatory actions that have heightened tensions within the crypto market. A recent court ruling against Coinbase Global Inc. (NASDAQ:COIN) largely dismissed the company’s motion to fend off SEC allegations of unregistered securities activity, particularly concerning its staking program.
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Furthermore, the market has seen significant volatility with major cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) experiencing price dips following regulatory scrutiny. Notably, Robinhood Markets Inc. (NASDAQ:HOOD) reported a substantial increase in crypto trading volume despite receiving a Wells notice from the SEC, indicating a complex and defiant landscape.
The U.S. House of Representatives has taken a stand against the SEC’s crypto custody rules, a move that President Joe Biden has vowed to block, further highlighting the contentious regulatory environment.
Read Next: Here’s How Much $1,000 Invested In Dogecoin Would be Worth If You Invested When Elon Musk First Tweeted About DOGE
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