Lido Labs responded to SEC questions, saying that governance tokens and LSTs should not be considered securities

According to the SEC, the Lido Labs Foundation responded electronically on March 24 to a question from the Securities Exchange Commission's (SEC) cryptocurrency task force regarding the regulatory status of governance tokens and liquidity staking tokens (LSTs), arguing that these digital assets should not be classified as securities under federal securities laws because of their fundamental utility and modus operandi.