Amanda Fischer, the former chief of staff at the SEC, faced backlash from the crypto community after likening liquid staking to Lehman Brothers' practices that contributed to the 2008 financial crisis. In a recent statement, the SEC indicated that liquid staking does not fall under its regulatory purview. Fischer criticized this stance on social media, stating that the SEC is endorsing rehypothecation practices from the traditional finance sector without oversight. Her comments sparked significant responses from industry figures, with many expressing confusion over the SEC's inconsistent messaging regarding crypto regulation. Critics argued that Fischer's comparison was misplaced and that blockchain transparency could prevent similar issues to those seen in conventional banking. Liquid staking currently has a total value locked (TVL) of approximately $66.94 billion, reflecting a growing trend in decentralized finance, despite initial dips earlier in the year. Discussions are ongoing about the regulatory landscape as the SEC navigates evolving crypto markets.

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