Former US Securities and Exchange Commission (SEC) chief of staff Amanda Fischer released a warning that liquid staking could trigger crypto’s own Lehman-style collapse. This statement has drawn attention from the crypto industry and also triggered fear and debate over how the U.S. should regulate staking tokens.
Fischer drew sharp criticism after making a statement on X, comparing liquid staking mechanisms to the practices that contributed to Lehman Brothers’ 2008 collapse. The SEC clarified on Tuesday that it does not consider most liquid staking activities as securities offerings and, therefore, outside its jurisdiction.
Fischer then criticized the agency’s stance, saying it legitimizes a system in which crypto assets are repeatedly staked and restaked with minimal transparency and accountability. Noting the contradictions in her statement, prominent crypto figures criticised her.
Joe Doll, general counsel at Magic Eden, also slammed Fischer and called her statement “incredibly misleading.” It “demonstrates either a misunderstanding of the basic technological features that underpin liquid staking (dumb/ill-prepared), or deliberate mischaracterization (malicious),” he wrote on X.
“First, you say the SEC is blessing crypto. Then you say crypto has no SEC oversight. Which is it? You’re contradicting yourself mid-rant,” Matthew Sigel, head of digital assets research at VanEck, wrote on X.
Mert Mumtaz, CEO of Solana infrastructure firm Helius Labs, stated, “Comparing transparent, decentralized systems governed by auditable code to opaque, shady ones enforced by crooks and saying the former is worse is insane work.”
“You either have no idea how LSTs actually work or are being intentionally obtuse,” he added.
While Fischer’s statements are broadly drawing criticism, it also triggered fear and tension among crypto investors. It highlighted the ongoing challenges of balancing innovation with oversight as the crypto sector rapidly evolves. Investors now suspect that minimizing risks in the decentralized ecosystem may stifle innovation.
Former SEC chief of staff Amanda Fischer warned that liquid staking could trigger a “Lehman-style collapse” in the crypto market.
The SEC has clarified that it does not consider most liquid staking activities to be securities offerings and are thus outside its jurisdiction.
The warning has highlighted the ongoing challenge of balancing crypto innovation with regulatory oversight and the fear that regulation may stifle progress.
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