The new administration, led by Donald Trump, is taking positive steps toward cryptocurrency. The US Securities and Exchange Commission (SEC) recently announced that transactions will not be classified as securities. In its latest statement, the SEC stated that liquid staking activities are not considered securities activities. Accordingly, the SEC issued a statement confirming that liquid staking transactions are not considered securities under current regulations. While there are many altcoins affected by this announcement, the following altcoins with a liquid staking theme and among the top 500 altcoins by market capitalization stand out: Lido DAO Token (LDO), JITO (JTO), Frax Share (FXS), Lido stETH (STETH), Lido wstETH (WSTETH), Wrapped Beacon ETH (WBETH), Jito Staked SOL (JITOSOL), Rocket Pool ETH (RETH), BounceBit BTC (BBTC), Kelp DAO Retake ETH (RSETH) and Liquid Staked ETH (LSETH). This statement by the SEC was met with both positive and negative comments. Accordingly, Amanda Fischer, general counsel to former SEC chairman Gary Gensler, likened the SEC's latest liquid staking disclosure to the collapse of Lehman Brothers in 2008. At this point, Fischer expressed his concerns about the possibility of a Lehman Brothers-like collapse in the cryptocurrency sector due to liquid staking. Fischer claimed that liquid staking in the crypto sector carries risks similar to the “double staking” practices before the Lehman Brothers collapse and could lead to a systemic collapse in the cryptocurrency sector. Fischer, a former SEC counsel, warned that the decentralized nature of cryptocurrencies increases risks and allows assets to be used repeatedly without clear accountability. Fischer's comments have also drawn criticism from prominent figures in the cryptocurrency space, with some accusing him of being contradictory, misleading the public, misunderstanding the situation, or deliberately distorting it. Fischer currently works at Better Markets, a policy group known for its opposition to the US spot Bitcoin ETF. *This is not investment advice. Continue Reading: Reactions Grow to SEC's Statement Concerning Many Altcoins! Former SEC Chairman Gensler's Chief Advisor Likens It to the Biggest Crash, Warns
