Consensys CEO blames SEC’s ‘abuse of power’ for 20% job cuts
Consensys, the blockchain powerhouse behind the popular MetaMask crypto wallet, has recently announced layoffs impacting more than 160 employees across all divisions. The move comes amid legal challenges, economic pressures, and growing friction between the crypto industry and U.S. regulators.
Founded in Brooklyn in 2014 by Joe Lubin, Consensys has evolved into a leading company in the blockchain space, dedicated to building applications on Ethereum, the second-largest blockchain network.
In a blog post, Joe Lubin announced a restructuring effort that would result in layoffs affecting over 160 employees from a total of around 828, which is about 20 percent of the staff. Lubin cited macroeconomic headwinds and ongoing legal costs as the primary drivers for the decision. The company intends to streamline its operations and allocate resources towards its most strategic initiatives.
Lubin expressed his disappointment with the Securities and Exchange Commission (SEC) and its approach to regulating the crypto industry. He stated, “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.”
Consensys’ legal counteraction
The SEC’s increased scrutiny has been a major thorn in Consensys’ side. The agency has been actively filing lawsuits against leading companies within the crypto industry, alleging violations of securities laws. The legal battles, along with the associated expenses, have made it difficult for Consensys to operate smoothly.
The company recently took the bold step of suing the SEC to clarify Ethereum’s status as a non-security. Although the case was dismissed, the company continues to be involved in ongoing legal disputes that drain both time and resources.
Economic pressures and market environment
Consensys has been impacted by global economic uncertainties, which have resulted in funding constraints and a tightening of resources. The ongoing regulatory disputes have only exacerbated these issues. The crypto industry has faced heightened scrutiny and fluctuating market conditions, making it difficult for even the most prominent players to thrive.
Gary Gensler, the SEC’s head, has maintained that existing laws are sufficient for the regulation of digital assets. This stance has led to numerous lawsuits against crypto companies, creating a murky legal landscape. Critics argue that the SEC has not provided enough clarity, resulting in a regulation by enforcement approach.
The ongoing regulatory ambiguity has emphasised the need for clear guidelines that foster innovation while protecting investors. Despite the challenges, Consensys is not backing down. Joe Lubin outlined the company’s vision of evolving into a decentralised network state, a new kind of digital-first organisation driven by blockchain principles.
Consensys remains committed to advancing MetaMask and other tools in its ecosystem. The company is focusing on enhancing the utility and accessibility of its products, with a continued emphasis on security and decentralisation.
