Key Takeaways
Consensys has reduced its workforce by 20% due to economic and regulatory pressures.
CEO Joe Lubin criticizes the SEC for its handling of crypto regulations.
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Consensys, the company behind the popular crypto wallet MetaMask, is laying off over160 employees, representing a 20% reduction in staff, Fortune reported Tuesday.
The decision comes at a challenging time. Consensys founder and CEO Joe Lubin said that macroeconomic headwinds and costly legal battles with the SEC were the primary reasons for the layoffs.
Lubin expressed frustration with the SEC’s aggressive stance towards the crypto industry, arguing that the agency’s actions have hindered innovation and stifled growth.
“Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC’s abuse of power and Congress’s inability to rectify the problem,” Lubin stated in a blog post.
Consensys has been at the forefront of the push for regulatory clarity in the crypto space. The company filed a lawsuit against the SEC earlier this year, challenging the agency’s assertion that Ethereum is a security.
In June, Consensys announced the SEC had ended its investigation into Ethereum 2.0, which they regarded as a victory for the blockchain sector. While the court dismissed the preemptive lawsuit, a related case brought by the SEC is still ongoing.
Despite the layoffs, Consensys remains committed to its mission of building a decentralized future. The company plans to accelerate its transition to a decentralized “Network State,” which aims to reduce reliance on centralized entities and mitigate regulatory risks.
This is a developing story.
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