Amanda Fisher compares Liquid Staking with Lehman Brothers risk

     Amanda Fisher, former chief of staff to SEC Chairman Gary Gensler, has likened liquid staking in crypto to the controversial "rehypothecation" practices that played a key role in the 2008 financial crash. She claims that liquid staking creates synthetic assets that can be reused without proper regulatory oversight, posing systemic risks.

Backlash from the Cryptoverse

     Her statement has been met with harsh criticism from crypto influencers and experts, who argue that her views are outdated and inaccurate. Many believe that rather than dismissing staking outright, regulators and industry leaders should work to better understand and navigate its technical nuances.

My Perspective

     It seems Amanda Fisher's comments are a reaction to the SEC’s recent softened stance on staking, which now excludes most protocols from being labelled as securities. Since these developments represent a shift away from the stricter views held under Gensler’s earlier direction, it's unsurprising that someone from his former team would express discontent.

Published at Wubits