New Delhi

Cryptocurrency firm Consensys said on October 29, it would cut 20 per cent of its total workforce, citing broader macroeconomic pressures and ongoing regulatory challenges facing the industry according to a detailed report by Reuters.

Advertisment

Crypto companies have frequently accused the US Securities and Exchange Commission (SEC) of regulatory overreach and exceeding its jurisdiction, while the agency argues that the industry is disregarding securities laws designed to protect investors and other market participants.

"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 CEO Joseph Lubin said in a blog post, the Reuters report detailed further.

"Such attacks from the US government will end up costing many companies that have been investigated, sued, or sent Wells Notices, many millions of dollars," he added. Further, a spokesperson for the SEC declined to comment on the allegations.

Advertisment

Basic facts of Crypto firm Consensys

Consensys is the leading blockchain and web3 software company according to the official website of the firm. Since 2014, Consensys has been involved with the innovation, pioneering technological developments within the web3 ecosystem. Through their product suite, including the MetaMask platform, Infura, Linea, Diligence, and its NFT platform, the platform aspires to become a trusted collaborator for users, creators, and developers.

High interest rates have caused a more cautious environment

Advertisment

The crypto firm added that elevated interest rates, inflationary pressures, and tightening liquidity have created a more "cautious macroeconomic environment." It also noted that the lack of regulatory frameworks in certain markets complicates operations.

In April, Consensys filed a lawsuit against the SEC related to the regulation of the Ethereum blockchain, following a formal notice from the agency indicating plans to pursue enforcement action against the firm.

The SEC had also sued Consensys in June, alleging the company had failed to register as a broker through its MetaMask swaps service.

Consensys, founded by Lubin, is an Ethereum-focused blockchain firm that offers products enabling developers, enterprises, and users to build applications for the "Web3" space. One of its key products is the popular MetaMask self-custodial crypto wallet, which allows crypto holders to store assets, as well as buy, send, and swap tokens.

Further, market participants and Crypto enthusiasts will follow these developments keenly and make informed investment decisions in the crypto market based on these developments.