Amid SEC clarifications that liquid staking activities are not securities, Fischer's controversial comparison to Lehman Brothers' practices has sparked strong backlash within the crypto community.
Former SEC chief of staff Amanda Fischer controversially compared liquid staking practices to the risky rehypothecation that contributed to Lehman Brothers’ collapse, drawing sharp criticism from crypto leaders. The SEC clarified that certain liquid staking activities are not treated as securities, with Commissioner Hester Peirce supporting the guidance while Commissioner Caroline Crenshaw highlighted regulatory ambiguities. Liquid staking protocols have achieved a total value locked (TVL) of $66.94 billion year-to-date, with Lido at $31.88 billion and Binance staked ETH surging nearly 90% to $11.4 billion.