Specification of B- and T-lymphoid cell fates appears to involve the expression of a shared set of genes encoding recombination proteins and of genes encoding lineage-specific components of antigen receptors. Recent studies using gene targeting have identified transcription factors that are required for the proper specification of lymphoid cell fates. On the basis of these data, a regulatory gene hierarchy which orchestrates the development of lymphoid progenitors from hematopoietic stem cells can be proposed.