Concerns Over Crypto Staking Raised Amid Industry Backlash

August 5, 2025 — Former SEC official Amanda Fischer has sparked debate in the crypto community by warning of a potential Lehman Brothers-style collapse due to the growing risks associated with liquid staking. Speaking on Monday, Fischer—formerly chief of staff under SEC Chair Gary Gensler—argued that rehypothecation risks tied to synthetic assets in liquid staking could destabilize the ecosystem, especially when facilitated by intermediaries.

Fischer's comments reflect growing regulatory concern but have triggered sharp backlash from the crypto industry. Austin Campbell, a blockchain expert, criticized regulators for using an outdated lens, arguing that oversight should focus on who controls the assets, not the asset class itself. Meanwhile, attorney Kurt Watkins dismissed Fischer’s claims as exaggerated, stating that the SEC is primarily concerned with specific liquid staking structures—not the concept as a whole.

Fischer, now affiliated with Better Markets, a group that has opposed the approval of a U.S. Bitcoin spot ETF, also faced criticism from other crypto figures who accused her of misrepresenting or misunderstanding the complexities of liquid staking.

The debate underscores the growing tension between regulators and the digital asset industry over how staking and decentralized finance should be governed.

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