Chair

April

Gary

Consensys, the blockchain development firm behind the popular MetaMask crypto wallet, has decided to lay off over 160 employees. The&nbsp;move impacts 20% of its total workforce.
According to founder and CEO Joe Lubin, this decision was driven by macroeconomic challenges and substantial legal costs incurred during the company’s extended regulatory battles.
<h2 id="job-cuts-at-consensys">Job Cuts at Consensys</h2>
In the latest <a href="https://consensys.io/blog/consensys-path-to-long-term-sustainability-and-decentralization" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">blog post,</a> Lubin criticized the US Securities and Exchange Commission (SEC) for what he termed an “abuse of power. ” He highlighted how multiple regulatory cases, including those involving his company, have resulted in significant job losses and hindered productive investment in the blockchain sector.
The exec argued that the agency’s aggressive enforcement actions and the lack of legislative support from Congress have created an environment of uncertainty, forcing many entities into costly legal battles. He further added that these government actions could ultimately lead to millions of dollars in losses for businesses that have been investigated, sued, or issued Wells Notices, stifling innovation and growth within the industry.
In response to these challenges, Consensys announced a workforce reduction affecting 20% of its employees, a decision aimed at streamlining operations and ensuring long-term sustainability. The company, however, assured that it will provide support for affected staff. This includes severance packages, extended stock option exercise windows, outplacement services, and continued healthcare benefits.
<blockquote>
 “Today, we are making the tough but prudent decision to streamline our operations to position Consensys for ongoing rapid innovation, long-term sustainability under possibly volatile scenarios, and continued leadership in the web3 space.”
</blockquote>
<h2 id="consensys-vs-sec">Consensys vs. SEC</h2>
Consensys and the SEC have been embroiled in a regulatory dispute this year. The company received a Wells notice from the agency in April which indicated that the latter might pursue enforcement actions related to Consensys’ MetaMask Swaps and MetaMask Staking offerings.
The software development company hit back with a <a href="https://cryptopotato.com/consensys-files-lawsuit-against-sec-over-ethereum-regulation/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">lawsuit</a> against the securities regulator and its five commissioners.
In its filing, Consensys alleged that the SEC is executing a campaign to control the cryptocurrency industry through enforcement actions targeting Ether. It referred to past agency statements, including those from Chair Gary Gensler, affirming that ETH was not a security and warned that a change in this stance could jeopardize companies that have relied on established regulatory frameworks.
However, in September, a Texas federal judge <a href="https://cryptopotato.com/texas-court-dismisses-consensys-lawsuit-against-sec/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">dismissed</a> the lawsuit on “procedural grounds.”
With the latest restructuring, Consensys also revealed plans to pivot towards decentralization, transforming its infrastructure products like MetaMask into protocols while fostering a “Network State” over time.
The post <a href="https://cryptopotato.com/consensys-cuts-workforce-by-20-joe-lubin-blames-secs-abuse-of-power/" rel="noopener noreferrer nofollow">Consensys Cuts Workforce by 20%, Joe Lubin Blames SEC’s ‘Abuse of Power’</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Consensys Cuts Workforce by 20%, Joe Lubin Blames SEC’s ‘Abuse of Power’

Table of Contents

CryptoPotato_News

Other articles published on Oct 30, 2024

Attention Altcoin Investors: There is a Major Unlock Alert for the Altcoin Listed on Binance! How...

Starknet Sets New Speed Record for Ethereum Layer-2 Scaling

Chainlink Price Forecast: A Deeper Dive into LINK’s Potential and Prospect ERC20 Alternatives!

Crypto’s Growing Influence in the U.S. Presidential Race: Donald Trump Leads the Pack

SEC Challenges Court's XRP Ruling in Formal Appeal

Wellington taps Ondo Finance to help with tokenized U.S. treasury fund

Join our free newsletter for daily crypto updates!