Consensys, the firm behind MetaMask, announced a 20% reduction in workforce, impacting over 160 employees. CEO Joe Lubin attributed this decision to economic challenges and the mounting costs from regulatory disputes with the SEC. Lubin criticized the SEC’s stance on digital assets, arguing that it stifles innovation and costs jobs.

This strategic move is part of Consensys’s plan to streamline operations and transition into a more decentralized "Network State." Despite the layoffs, the company remains committed to innovation and sustainability within the web3 space, providing support to affected employees as they seek their next opportunities.

Lubin expressed frustration over what he perceives as the SEC’s excessive interference, which he argues undermines Consensys's mission of decentralization. The legal conflict with the SEC, concerning Ethereum's classification as a security, is seen as hindering growth within the US blockchain industry, potentially affecting the nation's global standing.

In the wider crypto industry, there is a growing call for more transparent, consistent regulations that support technological progress while protecting businesses and consumers. Some former Consensys employees might find new opportunities at Alchemy, a competitor currently hiring.