LSM2 is a member of the LSm family of RNA-binding proteins. Component of LSm protein complexes, which are involved in RNA processing and may function in a chaperone-like manner. Component of the cytoplasmic complex which is thought to be involved in mRNA degradation by activating the decapping step. Component of the nuclear LSM2 complex, which is involved in splicing of nuclear mRNAs. LSM2 associates with multiple snRNP complexes containing the U6 snRNA It binds directly to the U6 snRNA and plays a role in the biogenesis and stability of the U6 snRNP and U4/U6 snRNP complexes. It probably also is involved degradation of nuclear pre-mRNA by targeting them for decapping. LSM2 binds specifically to the 3'-terminal U-tract of U6 snRNA. LSM2-LSM8 probably is involved in processing of pre-tRNAs, pre-rRNAs and U3 snoRNA.