Ex-SEC Chief Slammed for Comparing Liquid Staking to Lehman Brothers Collapse
Former U.S. SEC Chief of Staff Amanda Fischer is facing heavy backlash after likening liquid staking in crypto to the risky practices that led to the 2008 financial crisis.
On Tuesday, the SEC released a staff statement clarifying that certain liquid staking activities are not considered securities offerings—meaning they don’t fall under the agency’s jurisdiction.
But Fischer took to X (formerly Twitter) to criticize the move, comparing it to the controversial rehypothecation practices used by Lehman Brothers before its collapse.
> “The SEC's latest crypto giveaway is to bless the same type of rehypothecation that cratered Lehman Brothers — only in crypto it’s worse because you can do it without any SEC or Fed oversight,” she wrote.
Her post ignited a wave of criticism from the crypto community, with many calling the comparison exaggerated and misleading.