Consensys, a blockchain technology company and developer of the non-custodial wallet MetaMask, recently announced its decision to lay off 20% of its staff. This move comes amid tensions with the United States Securities and Exchange Commission (SEC).
Consensys Blames “SEC’s Abuse of Power”
Consensys claims its latest staff cut is a response to regulatory uncertainty, as unclear frameworks in crypto markets have created difficulties for blockchain innovators and investors. While trying to buttress this point, the company’s CEO, Joseph Lubin, attributed the blame to the SEC’s abuse of power. He said:
“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. 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.”
Notably, the controversy between Consensys and SEC focuses on the regulatory classification of Ethereum (ETH), which the first believes should not be considered a security. However, the SEC’s chairman, Gary Gensler, has made statements that suggest otherwise, leading to confusion and uncertainty among users.
It is essential to mention that regulatory woes are not the only reason for the staff cut. Lubin claimed the move is also a strategic response to the challenging macroeconomic environment, driven by rising interest rates, inflationary pressures, and tightening liquidity. The company believes that by reducing costs, it will thrive amid economic and regulatory uncertainty.
Consensys Pledges to Support Affected Staff
During the announcement, Lubin claimed the company would support employees impacted by the staff cut, helping them transition smoothly to their next job opportunity. The proposed support offering includes generous severance packages based on tenure, extended stock option exercise windows, and career outplacement services.
These services include one-on-one coaching, networking opportunities, and interview guidance. Additionally, Consensys will continue healthcare benefits in applicable regions. Lubin added that these support measures aim to appreciate the valuable contributions of departing employees and empower them for future success.
Meanwhile, the SEC and its chairman have been facing intense backlash lately. During a hearing, a congressman called Gensler the most destructive chair, and Commissioner Mark Uyeda labeled the SEC’s crypto approach a disaster. Even Coinbase’s CEO Brian Armstrong joined the chorus of dissatisfaction, stating that the next chairperson should publicly apologize to Americans.
