Economic and regulatory pressures prompt Consensys layoffs
CEO Joseph Lubin blames SEC ‘overreach’ for job losses at Consensys.
Consensys, a prominent cryptocurrency firm, has announced it will cut 20% of its workforce, equivalent to 162 of its 828 employees. CEO Joseph Lubin attributed the decision to persistent macroeconomic challenges and intensified regulatory scrutiny impacting the crypto sector. Rising interest rates, inflation, and liquidity constraints have further complicated the industry’s environment, contributing to Consensys’ decision.
Lubin voiced concerns over regulatory hurdles in the United States, specifically criticising the Securities and Exchange Commission (SEC) for what he described as overreach in its enforcement actions. He argued that multiple SEC cases, including one involving Consensys, have led to job losses and hindered productive investment. Lubin also accused the agency of misusing its authority, which he claims threatens to financially damage numerous companies involved in crypto.
The regulatory landscape for crypto remains complex, with limited frameworks in place across key markets. While some firms have accused the SEC of stifling innovation, the agency has consistently defended its actions, asserting that these measures are necessary to protect investors.