Concerns about cryptocurrency staking raised amid industry backlash
According to PANews, Amanda Fischer, a former chief of staff under former SEC Chairman Gary Gensler, expressed concerns on Monday about the potential for a Lehman Brothers-style collapse in the cryptocurrency sector due to liquid staking. Fischer highlighted that the SEC's stance acknowledges the risks of rehypothecation, as liquid staking creates synthetic tokens through intermediaries, allowing assets to be reused and amplifying risks in a decentralized environment. This perspective has faced strong opposition from the cryptocurrency industry.
Expert Austin Campbell argued that many lawmakers still view cryptocurrencies through an outdated lens, emphasizing that regulation should focus on identifying who has control. Blockchain attorney Kurt Watkins criticized Fischer's interpretation as exaggerated, noting that the SEC's interest lies in specific configurations of liquid staking. Fischer's comments have also faced criticism from notable figures in the cryptocurrency field, with some accusing her of being contradictory, misleading the public, or misinterpreting or intentionally misrepresenting the situation. Fischer is currently affiliated with Better Markets, a policy group known for opposing a spot Bitcoin ETF in the U.S.
