Hold onto your hats, folks, because there's a storm brewing in the world of crypto! Joe Lubin, the mastermind behind Consensys and the famous MetaMask wallet, is firing shots at the U.S. Securities and Exchange Commission (SEC), accusing them of being a bit too heavy-handed for his liking. He’s saying their aggressive antics, coupled with Congress sitting on their hands, are leaving businesses in a confusing and costly mess.
In a move that’s turning heads, Consensys is cutting its team by 20%, laying off over 160 employees. Lubin is pointing fingers at economic challenges and the sky-high legal fees from ongoing regulatory dramas as the culprits behind this tough call.
In a recent blog post, Lubin didn’t hold back. He called out the SEC for what he sees as an “abuse of power” that’s leading to job cuts and holding back the blockchain revolution. According to him, the SEC's aggressive tactics, paired with Congress’s radio silence, have created a cloud of uncertainty. This uncertainty is forcing companies into legal battles that burn through cash, potentially costing businesses millions and putting the brakes on innovation.
To navigate these stormy seas, Consensys is trimming down its crew, focusing on long-term survival and staying at the forefront of web3 innovation. But they’re not leaving their team high and dry—those affected will get severance packages, extended stock options, job placement help, and continued healthcare benefits.
Lubin’s not backing down from the SEC, either. Earlier this year, Consensys found itself in a tussle with the agency over MetaMask Swaps and Staking, receiving a Wells notice that hinted at future enforcement action. Not one to take things lying down, Consensys fired back with a lawsuit, claiming the SEC’s on a mission to control the crypto scene by targeting Ether. They’ve warned that if the SEC flips its stance on ETH, it could spell trouble for companies relying on current regulations.
Although a Texas federal judge recently tossed out Consensys's lawsuit on procedural grounds, the crypto giant isn’t stopping there. With its latest restructuring, Consensys is setting its sights on decentralization. They’re transforming their infrastructure products, like MetaMask, into protocols while nurturing a “Network State” in the long haul.
Stay tuned, because in the world of crypto, the plot just keeps thickening!
