The former SEC chief of staff compared liquidity pledges to the Lehman Brothers incident, and the crypto industry hit back

PANews reported on August 6th that, according to Decrypt, Amanda Fischer, former chief of staff under former SEC Chairman Gary Gensler, stated on Monday that liquidity staking could trigger a Lehman Brothers-style collapse in the cryptocurrency market. She claimed the SEC's stance is "endorsing double-collateralization" because liquidity staking creates synthetic tokens through intermediaries, allowing assets to be reused and amplifying risks due to decentralization, similar to the practices used by Lehman Brothers. This statement was strongly refuted by the cryptocurrency industry.

Expert Austin Campbell believes that many policymakers still view cryptocurrencies with outdated perspectives, and that the key to regulation lies in understanding who controls it. Blockchain lawyer Kurt Watkins claims Fischer's interpretation is exaggerated, and that the SEC's focus is on specific liquidity staking arrangements. Fischer's post also drew criticism from prominent figures in the cryptocurrency space, with some calling him self-contradictory, others claiming he misleads the public, and others stating he either lacks understanding or is deliberately playing dumb. Fischer currently works for Better Markets, a policy group that previously opposed US Bitcoin spot ETFs.