A software provider for the Ethereum network, Consensys Inc. let goes 162 positions which make up 20% of the firm’s workforce.
On Tuesday, it was mentioned in Consensys blog that “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 has cited a bad economy and poor regulatory environment
The owner, Joseph Lubin, is one of Ethereum’s co-founders. The New York-based company had listed broad economic conditions causing regulatory uncertainty towards workforce cutdowns.
Lubin also cited high interest rates, and inflationary pressures, coupled with a tightening liquidity that created a challenging macroeconomic environment. The company also bemoaned the lack of regulatory frameworks in some markets which complicates operations for businesses.
Lubin showed frustration at the regulator for stifling innovation in the crypto industry.
“Such attacks from the U.S. government will end up costing many companies that have been investigated, sued, or sent Wells Notices, many millions of dollars.”
Lubin.
In April this year, the company filed a lawsuit against the regulator, in a case related to the regulation of Ethereum blockchain, after a formal notice from the agency indicating plans to pursue an enforcement against the firm.
On the other hand, SEC also filed a lawsuit against Consensys two months later in June on allegations that the company had failed to register as a broker through its MetaMask swaps service.
Lubin founded the company, an Ethereum-focused blockchain company offering products enabling developers, enterprises, and users to build applications for the Web3 space.
According to a Reuters article, one of its key products is the popular MetaMask self-custodial crypto wallet, which allows crypto holders to restore assets, as well as buy, send and swap tokens.
1/5
The broader macroeconomic conditions over the past year and ongoing regulatory uncertainty have created broad challenges for our industry, especially for US-based companies.
— Joseph Lubin (@ethereumJoseph) October 29, 2024
Consensys among firms fighting for clear regulation
The crypto firm has also been at the forefront of fighting for regulatory clarity in the crypto industry. One of the notable cases is the filing against SEC, challenging the regulator on its assertion that Ethereum is a a security.
The company also announced in June that SEC had ended its investigation into the Ethereum 2.0. they regarded this a victory for the blockchain sector.
Several other crypto and related companies have been at loggerheads with the regulator. SEC is also reportedly targeting certain top crypto firms to frustrate the sector with controversial laws.
Recently, Coinbase filed an amicus brief on behalf of industry peers Beba Collection and DeFi Education Fund to stop the regulator the SEC from implementing some of its “retrogressive” laws.
“In the past few years, however, the SEC has unleashed an arbitrary regulation-by-enforcement campaign on digital assets.”
Coinbase.
In its amicus brief, Coinbase claimed that the regulator also provided different answers to the same questions. In one incident, Coinbase revealed that the regulator had said digital assets are not securities in 2018, creating unnecessary confusion.
As for Consensys, Lubin revealed that despite the layoffs, the company remains committed to its mission of building a decentralized future. Consensys is planning to increase its transition to a decentralized network state, which aims to reduce reliance on centralized entities and migrate regulatory risks.
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