Consensys Restructures Amid SEC Challenges

Blockchain technology company Consensys has announced a 20% workforce reduction, affecting over 160 employees, amidst economic pressures and regulatory challenges, particularly from the U.S. SEC. The layoffs are part of a strategic shift towards decentralization, aiming to transform core products like MetaMask and Linea into decentralized protocols, and evolve into a 'Consensys Network State.' CEO Joseph Lubin criticized the SEC's regulatory actions as an 'abuse of power' that hampers innovation, highlighting ongoing legal battles over allegations related to MetaMask's operations. Despite the layoffs, Consensys remains committed to its vision of a decentralized future, while it continues to provide severance packages and extended benefits to affected employees. The decision underscores the broader challenges faced by the crypto industry, including high interest rates, inflation, and regulatory scrutiny, which have impacted investment flows and operational costs.