CoinPedia has reported on TradingView that former US Securities and Exchange Commission (SEC) chief of staff Amanda Fischer has issued a warning about liquid staking, suggesting it could trigger a "Lehman-style collapse" in the crypto market. Her statement, made on the social media platform X, has been met with sharp criticism from the crypto community.
The article notes that the SEC has clarified that it does not consider most liquid staking activities to be securities, a stance that Fischer has since criticized. She argues that this legitimizes a system with minimal transparency. In response, prominent crypto figures have pushed back against her claims.
The article quotes Joe Doll, general counsel at Magic Eden, who called Fischer's statement "incredibly misleading" and suggested it demonstrates either a misunderstanding of the technology or a "deliberate mischaracterization." Matthew Sigel, head of digital assets research at VanEck, also pointed out the contradiction in her claims, asking if the SEC is "blessing crypto" or if crypto has "no SEC oversight." Additionally, Mert Mumtaz, CEO of Helius Labs, compared the transparent, decentralized nature of crypto systems to the opaque ones of traditional finance, calling Fischer's comparison "insane work."
The article concludes by highlighting that while Fischer's statements have drawn criticism, they have also created fear among crypto investors and brought to the forefront the ongoing challenges of balancing innovation with regulatory oversight in the rapidly evolving crypto space.
Image Source: Better Markets
