8/6/2025
Former SEC chief causes a stir: Liquid staking and its connection to Lehman Brothers
Coingarage Exchange

Former SEC chief causes a stir: Liquid staking and its connection to Lehman Brothers
Former US Securities and Exchange Commission (SEC) chief Amanda Fischer has once again stirred up the cryptocurrency scene with her sharp comments on social media. Her claim that activities related to liquid staking are similar to the practices that contributed to the collapse of Lehman Brothers in 2008 has sparked a storm of reactions and discussions about the future of cryptocurrency regulation.
In her post on Platform X (formerly Twitter), Fischer compared liquid staking to rehypothecation, or the reuse of assets as collateral, which was one of the key factors leading to the banking crisis fifteen years ago. According to her, the SEC recently approved certain forms of liquid staking without fully understanding its potential risks. "The SEC's latest move in the cryptocurrency space is similar to how Lehman Brothers used client assets as collateral for its transactions. And in crypto, it's even worse because it can be done without any oversight from the SEC or the Fed," Fischer warned.
The reaction on social media was immediate and sharp. Many experts and analysts dismissed her claims as simplistic and exaggerated, agreeing that the current regulation of liquid staking is still unclear, but not necessarily as dangerous as Fischer suggests.
Differing views on regulation and the future
SEC Commissioner Caroline Crenshaw also entered the fray, calling Fischer's comments inaccurate and warning that the current rules are still unclear and often based on assumptions. On the contrary, she was supported by her SEC colleague Hester M. Peirce, who described liquid staking as an innovative solution to old problems that could increase market liquidity and stability.
"Liquid staking is a new solution to an old problem," Peirce said. According to her, it offers the possibility of better use of fungible assets and increases the efficiency of the entire system.
However, critics and supporters disagree on the interpretation of the regulation. Matthew Sigel, head of digital asset research at VanEck, pointed out that Fischer contradicts herself when she claims that the SEC approves cryptocurrencies while at the same time refusing to subject them to regulation. Mert Mumtaz of Helius Labs, on the other hand, points to the transparency of blockchains and questions the intentions of regulators.
Lawyer Jason Gottlieb was skeptical about the whole thing: "Her comments are neither technically nor legally correct. If blockchain-based rehypothecation had existed in 2008, we would have had problems much earlier."
Interesting facts and statistics: What do the numbers say?
Liquid staking protocols currently have a total value locked (TVL) of nearly $67 billion, representing a 14.5% increase since the beginning of the year. Binance, the second-largest platform in this area, has seen nearly double-digit growth, with its TVL rising to $11.4 billion.
Despite some fluctuations in the data, it is clear that interest in liquid staking is growing and this segment of the cryptocurrency market continues to maintain a significant position. However, the question of what future regulation in this area will look like remains open and lively.
Conclusion: Controversy as a sign of change?
Fisch's comments and the subsequent public reaction show how complex and contradictory the current debate on crypto regulation is. While some see potential and innovation in liquid staking, others warn of possible risks similar to those that contributed to the worst financial crisis of modern times.
What is certain is that issues of transparency, regulation, and security will remain key in the coming months. And as the regulatory environment evolves, the crypto community will need to find a balance between innovation and investor protection.
*This is not investment advice.
The Coingarage Team