Liquidity staking can increase systemic risk in the cryptocurrency market, similar to the collapse of Lehman Brothers if not tightly controlled.
This is the assertion of Amanda Fischer, former Chief of Staff to SEC Chair Gary Gensler, as she warns about systemic risks from 'double-collateralization' in liquidity staking. However, this view has faced significant opposition from the cryptocurrency community and blockchain legal experts.
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Amanda Fischer warns that liquidity staking may cause a collapse of the cryptocurrency market similar to Lehman Brothers.
The SEC is believed to support 'double-collateralization' through the creation of synthetic tokens, increasing risk.
The community of experts and the cryptocurrency industry strongly rebutted Fischer's views.
What is liquidity staking and why is it concerning?
Liquidity staking creates synthetic tokens representing staked assets and can reuse them, thereby increasing liquidity. However, Amanda Fischer argues that this mechanism creates systemic risks similar to 'double-collateralization' – when assets are collateralized multiple times, increasing the risk of collapse.
Fischer warns that this could face a crisis similar to Lehman Brothers in traditional finance, when complex financial products lack control. The creation of multi-layer synthetic assets undermines transparency principles, making it difficult to control potential risks in the cryptocurrency market.
Why is Amanda Fischer's perspective controversial in the cryptocurrency industry?
Fischer's views have been challenged by many experts, developers, and cryptocurrency organizations. They argue that this assertion imposes an outdated perspective and does not accurately reflect the actual mechanics of liquidity staking.
Blockchain lawyer Kurt Watkins stated that Fischer exaggerates the issue and the SEC only focuses on monitoring specific high-risk forms of liquidity staking. Some experts even argue that Fischer lacks deep understanding or is deliberately misleading the public.
"Many operators still approach cryptocurrency through an old lens, not fully understanding the power control mechanisms in blockchain. This makes policies easily misapplied, affecting industry development."
Austin Campbell, cryptocurrency regulation expert
What is the SEC's attitude towards liquidity staking?
The SEC is believed to have a cautious stance towards liquidity staking, especially forms that create synthetic tokens that increase systemic risk. Fischer claims that the SEC implicitly supports 'double-collateralization', but this view is not accepted by most experts.
In fact, the SEC is primarily concerned about transparency, legal risks, and investor protection in complex staking products. Policies always focus on controlling activities that generate systemic risks in the cryptocurrency ecosystem.
"The SEC has been and is working to balance technological innovation and investor protection, focusing on addressing truly risky cases instead of banning the entire staking mechanism."
Analysis of SEC policy report, 2023
How do Amanda Fischer and her organization influence this perspective?
Amanda Fischer previously served as Chief of Staff for SEC Chair Gary Gensler and currently works at Better Markets – a policy advocacy group that opposed the issuance of Bitcoin spot ETFs in the United States.
Fischer's warnings about liquidity staking also reflect a cautious and somewhat conservative approach in financial policy. However, this has also increased controversy as many experts believe she lacks consensus with the reality of the cryptocurrency industry.
Frequently asked questions
Is liquidity staking the main cause of risk for the cryptocurrency market?
Liquidity staking has potential risks if poorly managed, but it is not the sole cause. Proper management helps mitigate systemic risk.
Does the SEC really support 'double-collateralization' in staking?
This view has been rebutted by many experts. The SEC focuses on monitoring actual risks, which does not imply encouraging all forms of staking.
Is Amanda Fischer a respected expert in the field of cryptocurrency?
She has experience working at the SEC, but her views on staking are controversial and not consensus among the cryptocurrency community.
How to mitigate risks from liquidity staking?
Transparency regarding assets is needed, stringent control over the issuance mechanism of synthetic tokens, and enhanced legal oversight.
What distinguishes safe staking from risky staking?
The key factors are transparency, the token management mechanism, and the level of financial risk control in the staking platform.
Source: https://tintucbitcoin.com/cuu-sec-so-sanh-cam-ket-thanh-khoan/
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