Lido has accelerated its efforts to decentralize its staking platform in response to SEC charges of selling unregistered securities. Without decentralization, the platform's token is considered a security under the new FIT-21 act.
Key Insights:
Lido is decentralizing its ETH staking platform following SEC charges for issuing unregistered securities.
The platform issues stETH to those who stake their ETH with Lido.
With $33 billion in staking operations and control over 29% of the stETH supply, Lido's token falls under the security classification of the FIT-21 act.
Decentralization efforts include diversifying validators and reducing its 9% extra reserves.
LidoDAO's governance token, LDO, plummeted 25% a week after the SEC's charges.