The FIT-21 Law Could Lead Lido Into Trouble

Krutika Adani

Lido Isn’t Fully Decentralized

Lido still controls 29% of the stETH token supply, which has caused its trouble.

SEC’s Case Was Filed Before Lido’s Decentralization Efforts

Even if the platform decentralizes now, the SEC has already filed a case.

What Does FIT’s Decentralization Criteria Say?

As per FIT-21, if a cryptocurrency has 20% or more supply with a single entity, individual or otherwise, the crypto is to be classified as a security.

Legal Options for Lido

Lido can still negotiate with the SEC for a reduced penalty.

What Is at Stake?

Lido risks incurring a heavy penalty if it does not explore legal options quickly.

Learn more