According to PANews, Amanda Fischer, former chief of staff to ex-SEC Chair Gary Gensler, has raised alarms over the potential for a Lehman-style collapse in crypto due to liquid staking. Fischer warns that synthetic tokens and rehypothecation via intermediaries could amplify systemic risks.
However, the crypto industry is pushing back hard. Expert Austin Campbell points out that regulators still view crypto through an outdated lens, stressing the need to focus on who controls assets rather than broad bans. Blockchain attorney Kurt Watkins labeled Fischer’s stance as overstated, noting the SEC’s interest lies in specific staking models — not the entire sector.
Critics have accused Fischer of being contradictory and misleading, especially given her affiliation with Better Markets, a group known for opposing a U.S. Bitcoin spot ETF.
💭 The debate highlights the growing tension between regulation, innovation, and risk in decentralized finance. Will oversight adapt, or will outdated perceptions shape policy?