Former Securities and Exchange Commission (SEC) chief of staff Amanda Fischer has drawn the Ire of the Crypto community after comparing liquid to the factors of factors that exacerbated the 2008 financial crisis.
In a statement by Tuesday’s staff, the SEC said it was not considered to be some liquid staking activity to be security offerings And, like that, they do not fall under the agency’s perspective.
In a post on X, Fischer compared Liquid staking activities with the use of Lehman Brothers’ of client assets as collateral for company transactions. The collapse of the investment bank was seen as the peak of the financial crisis in 2008.
“The SEC’s latest giveaway is to bless the same type of rehpothecation that has cultivated Lehman brothers – in Crypto it’s just worse because you can do it without any SEC or Fed administration.” Fischer said.
SEC Commissioner Caroline Crenshaw also criticized the move on Tuesday. He said that the SEC statement relies on assumptions and provides minimal regulations clarity.
On the flip side, the SEC Commissioner Hester M. Peirce supported the agency’s decision. “Liquid staking is a new solution to an old problem,” Peirce told an official SEC statement. He compares liquid staking with a practice that improves the liquidity of fungible goods.
Fischer’s comment sparks backlash
Fischer’s comment was not to sit properly in the crypto community, which widely saw the new SEC guide as a win for decentralized finances and institutional crypto adoption.
“First you say that the SEC is a blessing of crypto. Then you said the crypto has no SEC oversight. Which one is it? You contradict yourself in the middle of the rant.” Head of Vaneck of Digital Assets Research Matthew Sigel, Says In a response to X.
Fischer responded to Sigel, clarifying that the SEC was a “blessing” liquid staking as outside the scope of security and thus not subject to its constituency.
Mert Mumtaz, CEO of Helius Labs, compared The transparent decentralized nature of blockchains in the fuzzy banking system.
“You also have no idea how LSTS really works or I meant to get it,” Mumtaz added.
Jason Gottlieb, a New York -based lawyer, Says Fischer’s comment is incorrectly “technically or legal”.
“If the blockchain -based rectothecation was around in 2008, we wouldn’t have the issues we made,” Gottlieb said.
TVL Resurrection
Liquid staking protocols currently have a total locked amount (TVL) of $ 66.94 billion in all protocols, up to 14.5% year-to-date. However, TVL briefly dropped below $ 30 billion in April, According to In Defillama.
Related: Liquid Staking Token launches in Solana with support from Coinbase, Kraken, Galaxy
Lido Finance is currently leading the category with a market part of almost 48%. Its tvl stands on 31.88 billiondown 1.5% year-to-date.
Meanwhile, Binance Staked Eth, the second largest staking service, saw its TVL surge nearly 90%, as TVL is currently standing in $ 11.4 billion Compared to $ 6.05 billion at the start of the year.
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