Consensys CEO Holds SEC ‘Abuse of Power’ Responsible for 20% Layoff

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Harvey Hunter

Junior Content Creator

Harvey Hunter

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Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.

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October 29, 2024

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Consensys CEO Joseph Lubin expressed frustration with the SEC’s aggressive stance towards the crypto industry in an October 29 blog post, arguing that the agency’s actions have hindered innovation and stifled growth.

“Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC’s abuse of power and Congress’s inability to rectify the problem,” Lubin’s post read.

While layoffs have become a common occurrence over past years as high interest rates have left marks on many balance sheets, crypto-native firms like Consensys have been particularly hard-hit when entangled in SEC regulatory actions, suffering under the weight of legal fees.

In an attempt to fight back against the regulator, Consensys sued the SEC earlier this year for regulatory overreach, arguing that it is attempting a power grab over Ethereum.

The effort was part of a bigger trend seen in the crypto space of large companies willing to turn the tables.

Consensys Pleads to the Next U.S. President

Consensys layoffs come nearly one week after Consensys pleaded for clear crypto regulations in an open letter addressed to the next U.S. president.

The blockchain developer expressed concerns over the fragmented nature of U.S. crypto regulations, which it argues create an environment conducive to fraudulent activities.

The company further highlighted how inconsistent rules have resulted in enforcement actions that disrupt legitimate businesses.

Consensys stressed the need for collaboration between Congress and regulatory bodies to prevent what it describes as “disingenuous enforcement actions.”

The company’s letter urged the next administration to focus on “advancing progress, accountability, and equitable access” for everyone involved in the Web3 space.

Consensys pointed out that blockchain and cryptocurrency technologies are seeing widespread adoption in regions like Europe and Asia, making regulatory clarity even more critical for the U.S. to remain competitive.

U.S. Election to Bring Regulatory Shift

The November 5 presidential election is anticipated to mark a turnaround in the U.S. crypto regulatory framework, with bipartisan backing from leading candidates Donald Trump and Kamala Harris.

The possibility of a leadership change at the SEC looms large in the upcoming presidential election. Former President Donald Trump has vowed to dismiss Gensler on his first day if re-elected, with other Republican leaders also advocating for new leadership at the agency.

Meanwhile, pro-crypto voices in the industry have called for the appointment of a chair with a more forward-looking stance, and people like Rep. French Hill also recently called for SEC leadership change in 2025.

While crypto hasn’t been a focal point of Kamala Harris’s campaign, industry advocates continue to hope that she will bring about a positive shift.

Ripple co-founder Chris Larsen claims Harris is “pro-innovation.” He cites her economic stance as an assurance that “our American champions dominate their industries around the world.”

Larsen’s substantial $10 million XRP contribution to support Harris’ campaign reflects confidence in her potential to cultivate a more favorable regulatory environment, especially since the SEC’s regulatory actions have greatly impacted Ripple’s XRP.