Consensys, one of the main supporters of the Ethereum network, is laying off 20% of its workforce, blaming broader macroeconomic conditions and ongoing regulatory uncertainty, including the Securities and Exchange Commission’s (SEC) “abuse of power” in the space.
“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,” founder and CEO Joe Lubin said in a blog post. “Such attacks from the US government will end up costing many companies…many millions of dollars.”
Consensys, the maker of the MetaMask wallet, has been in an ongoing battle with the financial regulator after it alleged the firm of operating as an unregistered broker that “engaged in the offer and sale of securities” in June through its MetaMask services. Other Ethereum staking services, which functioned as third-party platforms for the wallet, had also been sued.
Many crypto companies have laid off part of its workforce in the past years as high interest rates have left marks on many balance sheets and came at a time when the SEC was doubling down its enforcements on crypto-native firms, leading to increased spending on legal fees.
In an attempt to fight back against the regulator, Consensys earlier this year sued the SEC for regulatory overreach, arguing that it is attempting a power grab over Ethereum. The effort was part of a bigger trend seen in the crypto space of large companies willing to turn tables. Coinbase and Grayscale have both sued the SEC previously while Kraken and Uniswap have vowed to do the same.