Gensler’s Former Aide Sparks Crypto Uproar with Liquid Staking Critique

Tensions are rising in the crypto world once again. Amanda Fischer, former chief of staff to SEC Chairman Gary Gensler, has gone public with harsh criticism of liquid staking — comparing it to the toxic practices that led to the collapse of Lehman Brothers in 2008. Her comments have ignited strong backlash from industry leaders and analysts alike.

⚠️ “Leverage on steroids”? In a post on X, Fischer warned that liquid staking — where investors stake crypto and receive liquid staking tokens (LSTs) in return — resembles the dangerous financial engineering of the past. “It’s like Lehman borrowing customer assets and pledging them for more market bets,” she wrote. Fischer argued that by not classifying staking as a security, the SEC is essentially approving the unchecked creation of synthetic tokens without oversight. According to her, this practice could lead to cascading failures across the crypto ecosystem.

💥 Crypto Community Strikes Back: “You’re looking at a decentralized world with centralized glasses” Fischer’s post didn’t go unanswered. Mert Mumtaz from Solana called her comparison “insane,” suggesting she either doesn’t understand how LSTs work — or is being deliberately vague. Matthew Sigel of VanEck pointed out a contradiction in her logic — first claiming the SEC is endorsing crypto, then accusing it of not regulating it at all. “Which is it?” he asked. Austin Campbell from Zero Knowledge Consulting added that regulators still view the world through a centralized lens dating back to the 1970s. “They don’t understand how automation changes everything,” he said.

🏛 SEC Under Pressure – Calls for Reform Are Growing Fischer’s critique has reignited the regulatory debate. She’s not the first from Gensler’s camp to stir the waters. Earlier, SEC Commissioner Caroline Crenshaw made headlines for her aggressive anti-crypto stance. Crenshaw later clarified that SEC guidance on staking is not legally binding — adding to the confusion and mistrust around the agency’s approach.

📉 What’s Next? While the SEC remains silent, the crypto industry is demanding regulatory clarity. The rise of liquid staking and growing user adoption are putting pressure on policymakers to modernize outdated frameworks. At stake is not only investor confidence but also the future of innovation in staking models, which are key to many blockchain networks.

#crypto , #Regulation , #SEC , #GaryGensler , #CryptoNews

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