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Former SEC advisor compares liquid staking to Lehman Brothers, crypto community fiercely retaliates.
Amanda Fischer, former Chief of Staff to SEC Chairman Gary Gensler, has just warned that liquid staking could cause a "Lehman Brothers-style disaster" for the crypto market.
Fischer compared the issuance of staking tokens through intermediaries to "rehypothecation" — the act of using customers' assets for collateral without control, which contributed to the 2008 crisis.
However, lawyers and founders in the industry immediately refuted. They argued that Fischer misunderstood the SEC's position, which only applies to passive staking models and does not use leverage.
Matthew Sigel (VanEck), Mert Mumtaz (Helius Labs), and Joe Doll (Magic Eden) have all criticized Fischer for his "misleading" statements, "lack of knowledge," or for being "deliberately misleading."
Experts emphasize: liquid staking is transparent, automated, and cannot be compared to the opaque systems that have collapsed.