Backlash as ex-SEC chief of staff links liquid staking to Lehman Brothers

Key Points

1. Amanda Fischer, former SEC chief of staff, compared liquid staking to Lehman Brothers, claiming it lacks SEC or Fed oversight, which drew criticism from the crypto community.

2. SEC Commissioner Caroline Crenshaw criticized the SEC's stance on liquid staking, while Commissioner Hester Peirce supported it, calling it a solution to liquidity issues.

3. Industry figures like Matthew Sigel and Mert Mumtaz disputed Fischer's claims, arguing they were contradictory or misunderstood how liquid staking works.

4. Lawyer Jason Gottlieb stated Fischer's comments were incorrect, suggesting blockchain-based rehypothecation could have prevented past financial crises.

5. Liquid staking protocols currently have a TVL of $66.94 billion, with Lido Finance dominating the market, though TVL briefly dropped below $30 billion in April.