TechFlow, August 6 — According to Decrypt, Amanda Fischer, former chief of staff to SEC Chair Gary Gensler, compared crypto liquid staking mechanisms to the rehypothecation practices that contributed to the collapse of Lehman Brothers, sparking widespread controversy in the industry. Fischer stated on social platform X that the SEC's stance on liquid staking equates to endorsing rehypothecation practices similar to those seen at Lehman Brothers.
Several industry figures have pushed back. VanEck's Head of Digital Asset Research, Matthew Sigel, pointed out inconsistencies in Fischer's argument. Austin Campbell, founder of Zero Knowledge Consulting, said this reflects how policymakers still view crypto through a traditional lens. Blockchain lawyer Kurt Watkins added that Fischer misinterpreted the SEC's position, noting that the SEC's guidance primarily targets liquid staking setups lacking independent decision-making authority.
