ConsenSys Redundancies Impact 20% of Employees during SEC Struggle
In a series of events that have shaken the crypto industry, Consensys, a leading blockchain software company, has been embroiled in a legal tussle with the U.S. Securities and Exchange Commission (SEC) since June 2021. The SEC accused Consensys of offering and selling unregistered securities through its MetaMask wallet, specifically its crypto-staking service on Ethereum [1].
However, it's important to note that, as of the latest information available, no public record indicates an active legal battle between Consensys and the SEC regarding MetaMask's crypto-staking service [2]. This is in contrast to other crypto companies, such as Coinbase and Ripple, who have faced enforcement actions from the SEC, with some cases being dismissed or settled in 2025 [3][4].
The SEC's litigation release page from July 1, 2025, does not mention any new or ongoing case against Consensys related to MetaMask's staking service [5]. Consensys' founder and CEO, Joe Lubin, has been vocal about the implications of such regulatory actions, arguing that the lack of clear regulatory frameworks in some markets has made navigating the evolving crypto space unnecessarily complex [6].
Meanwhile, Consensys has been undergoing internal changes. In a blog post titled "Consensys' path to long-term sustainability and decentralization," Lubin did not discuss any specific new legal actions or settlements with the SEC, nor did he mention changes in the company's leadership, business strategy, product launches, partnerships, or collaborations [7]. The post, however, did announce a 20% staff reduction [8].
Elsewhere in the crypto world, Crypto.com sued the SEC after receiving a Wells Notice in October 2021, citing a need to protect the future of the cryptocurrency industry in the U.S. [9]. Robinhood Crypto's crypto business unit, too, has been cooperating with SEC investigations [10].
As the crypto landscape continues to evolve, it's crucial to keep a close eye on regulatory developments and company announcements for any future updates regarding Consensys and the SEC.
In the rapidly changing crypto landscape, Consensys' founder, Joe Lubin, has voiced concerns about the complexities arising from unclear regulatory frameworks, yet no active legal battle regarding MetaMask's crypto-staking service appears to be ongoing between Consensys and the SEC [6]. Amidst this, technology innovations, new business strategies, and partnerships continue to emerge in the world of finance and technology, shaping the future of crypto companies.
