Blockchain firm Consensys announced it will reduce its workforce by 20%, with CEO Joseph Lubin confirming that 162 out of 828 employees will be affected. Lubin attributed the decision to economic challenges and persistent regulatory issues facing the industry.
Crypto companies have frequently challenged the U.S. Securities and Exchange Commission (SEC) over what they describe as regulatory overreach. The SEC, however, contends that the sector often ignores securities laws meant to protect investors. In a recent blog post, Lubin commented,
“The SEC’s aggressive stance has led to significant job losses and stifled investment.”
Consensys further noted that higher interest rates, inflation, and liquidity constraints are contributing to a more cautious economic climate. The lack of clear regulatory frameworks in some regions is also affecting operations. In April, Consensys filed a lawsuit against the SEC over Ethereum regulation, and in June, the SEC sued the company, alleging it failed to register as a broker with its MetaMask swaps service.
Founded by Lubin, Consensys specializes in Ethereum-based blockchain solutions, including its popular MetaMask wallet, which enables users to store, buy, send, and swap crypto assets.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
