📢 MetaMask's parent company Consensys lays off staff, Joe Lubin accuses SEC of 'abuse of power'
In the latest news, blockchain development company Consensys, the parent company of the well-known MetaMask wallet, announced a difficult decision to lay off 20% of its workforce, affecting over 160 employees.
Consensys CEO Joe Lubin candidly criticized the aggressive actions of the U.S. Securities and Exchange Commission (SEC) and Congress's inaction, which have created uncertainty in the industry, leading companies into costly legal battles.
Lubin pointed out that the SEC's 'abuse of power' has not only resulted in widespread unemployment but has also hindered investment in the blockchain sector. He mentioned that the SEC's aggressive enforcement actions and lack of legislative support have created an uncertain environment, forcing many companies to face expensive legal disputes, ultimately costing businesses millions of dollars and stifling innovation and growth within the industry.
To address these challenges, Consensys has decided to streamline operations to ensure long-term sustainability. The company has committed to providing support to affected employees, including severance pay, an extended stock option exercise window, re-employment services, and continued healthcare benefits.
Just recently, Consensys also received a Wells notice from the SEC regarding the MetaMask Swaps and MetaMask Staking products, indicating that the SEC may take enforcement action.
Consensys even sued the SEC and its five commissioners, accusing the SEC of attempting to control the cryptocurrency industry through enforcement actions against Ether. However, this lawsuit was dismissed in September by a federal judge in Texas on 'procedural grounds'.
It is noteworthy that Consensys revealed its plans for a transition to decentralization in its recent restructuring, intending to transform foundational products like MetaMask into protocols and gradually develop its network to become more mature and stable.
🗣 Conclusion:
In the face of SEC regulatory pressure, Consensys's layoffs and Joe Lubin's criticisms of the SEC, along with Consensys's proactive response strategies to regulation, emphasize the importance of regulatory agencies in formulating reasonable regulatory frameworks that are crucial for protecting investors, ensuring business operations, and promoting healthy industry development.
💬 What are your thoughts on Consensys's layoffs and Joe Lubin's accusations against the SEC?
