Lido DAO Governance Token Surges on Coinbase CEO's Comments About SEC Staking Ban

The SEC has declined to comment on rumors that it intends to classify tokens that allow staking as securities.

AccessTimeIconFeb 9, 2023 at 3:56 a.m. UTC
Updated Feb 9, 2023 at 3:11 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

The governance token for the liquid staking platform Lido has surged on rumors boosted by Coinbase CEO Brian Armstrong the U.S. Securities and Exchange Commission (SEC) might ban staking for retail customers.

LDO, the governance token of the decentralized autonomous organization behind Lido, surged around 11% in the immediate aftermath of the comments, and is up around 8.4% in the past 24 hours.

LDO Price (CoinDesk)
LDO Price (CoinDesk)

The Lido protocol, governed by the LDO token, allows for the staking of ether. Users are given a token called stETH which represents their staked position in ether, and they will be redeemable 1:1 for ether after next month’s network upgrade, named "Shanghai." As a decentralized protocol, it's unlikely it will have the same compliance with securities rules as a U.S.-domiciled centralized entity like Coinbase.

Data provided by DeFiLlama shows that the total value locked in Lido has surged 33% in the last month. Currently, Lido has a TVL of $8.56 billion.

On-chain data shows that Lido currently has a market share of 25% of the staking pool market.

Ethereum staking pool distribution (
Ethereum staking pool distribution (

Coinbase has 11.5%, while Kraken has 7%. Should the SEC make the move that Armstrong says it might, this would be a boon for Lido, allowing it to capture the market that Coinbase and other U.S. domiciled providers have.

The SEC has declined to comment on the rumors.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.