Consensys to lay off 20% of staff amid industry challenges
Consensys, a major player in the cryptocurrency space, has revealed plans to cut 20% of its workforce, citing broader economic pressures and ongoing regulatory challenges.
This decision affects 162 employees out of the company’s total workforce of 828, according to Reuters.
The regulatory landscape has been tough for crypto companies, who often feel they’re under attack from the U.S. Securities and Exchange Commission (SEC). Many firms accuse the SEC of regulatory overreach, while the SEC argues that the industry is simply ignoring securities laws meant to protect investors. Consensys founder, Joe Lubin, voiced his frustrations in a blog post, saying that the SEC’s actions are costing jobs and deterring investment. “These aggressive actions by the U.S. government are costing companies millions of dollars in legal battles,” he added.
Meanwhile, the web3 ecosystem continues to evolve rapidly. The industry is on the brink of going mainstream, with web3-native companies making big strides and even traditional companies starting to explore web3. The future could belong to smaller, agile, AI-powered companies that leverage web3 tools to operate more efficiently – shifting away from the dominance of large corporations. To keep up in this fast-moving space, Lubin suggested that Consensys and others in the industry will need to become more agile and high-performing.
The SEC declined to comment on Lubin’s accusations. However, Consensys also cited other economic pressures, like rising interest rates, inflation, and tighter liquidity, as factors driving their cautious approach to growth.
Back in April, Consensys had already filed a lawsuit against the SEC regarding its approach to regulating Ethereum. The company argued that the SEC was attempting to “unlawfully regulate” Ethereum through selective enforcement actions, and Consensys sought a court ruling that the SEC lacks the authority to regulate Ethereum-based interfaces.
Then, in June, the SEC sued Consensys, claiming the company had failed to register as a broker with its MetaMask swaps service and hadn’t registered its crypto staking programs as securities. These programs allow users to lock up tokens in exchange for yield, but the SEC alleged that Consensys collected over $250 million in fees without the proper registration. This lawsuit was filed in the US District Court in Brooklyn, New York.
Consensys, founded by Joe Lubin, is a blockchain company with a strong focus on Ethereum. The firm provides a suite of products for developers, businesses, and users building in the “Web3” space. Among its popular offerings is MetaMask, a self-custodial wallet that allows users to securely store, buy, send, and swap crypto assets.
(Image by PIRO)
See also: Future of Ethereum: Navigating ‘The Verge’
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