The lariat-capping (LC) ribozyme is a natural ribozyme isolated from eukaryotic microorganisms. Despite apparent structural similarity to group I introns, the LC ribozyme catalyzes cleavage by a 2′,5′ branching reaction, leaving the 3′ product with a 3-nt lariat cap that functionally substitutes for a conventional mRNA cap in the downstream pre-mRNA encoding a homing endonuclease. We describe the crystal structures of the precleavage and postcleavage LC ribozymes, which suggest that structural features inherited from group I ribozymes have undergone speciation due to profound changes in molecular selection pressure, ultimately giving rise to an original branching ribozyme family. The structures elucidate the role of key elements that regulate the activity of the LC ribozyme by conformational switching and suggest a mechanism by which the signal for branching is transmitted to the catalytic core. The structures also show how conserved interactions twist residues, forming the lariat to join chemical groups involved in branching.RNA structure | RNA catalysis | GIR1 | crystallography | SAXS V arious mechanisms critically regulate splicing, thus controlling the fate of host gene products. Most splicing that relies solely on autocatalytic RNA introns appears to be unregulated, but control can be achieved at the RNA level because the structural versatility of RNA allows for the fusing of functional modules that can work in concert (1). Examples of riboswitches adjoined to spliceosomal (2) or group I (3) introns illustrate this concept and suggest that uncharacterized splicing regulation mechanisms may exist.An elaborate example of RNA-regulated splicing is the group I twin-ribozyme introns found in the small subunit (SSU) ribosomal precursor in several protists (Fig. 1A). These twin-ribozyme introns are composed of a conventional group I splicing ribozyme (GIR2), into which is inserted a cassette composed of a branching ribozyme upstream from a homing endonuclease (HE) gene (4). The branching activity results in cleavage and concomitant formation of a 3-nt lariat capping the 5′ end of the HE pre-mRNA (Fig. 1B) (5), hence the name "lariat capping" (LC) ribozyme. The lariat cap appears to act as a substitute for a conventional mRNA m 7 G cap in a situation in which an mRNA is expressed from within a RNA polymerase I (polI) gene (6). The cross-talk between GIR2 and the LC ribozyme is supported by the existence of three distinct processing pathways of the rRNA precursor, depending on environmental conditions. Under favorable conditions, splicing by GIR2 takes place first, followed by branching by the LC ribozyme and further processing, and eventually translation of the HE mRNA (7,8). The transcriptional order of the ribozymes implies that the activity of the branching ribozyme is specifically repressed until splicing has taken place. Cellular stress conditions induce formation of full-length intron circles by a circularization pathway (9) that leaves the ribosomal exons unligated. Finally, starvation conditions induce bran...