Consensys, a key supporter of the Ethereum network, is preparing to cut 20% of its workforce due to a combination of broader economic conditions and ongoing regulatory challenges from the SEC, which it has accused of 'abuse of power'.

"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," expressed Joe Lubin, founder and CEO, in a blog post.

“Such attacks from the US government will end up costing many companies…many millions of dollars.”

The SEC alleged that Consensys operated as an unregistered broker through their MetaMask services, an accusation that has sparked ongoing litigation.

Furthermore, the wave of layoffs across the crypto sector continues as many firms grapple with high interest rates and escalating legal expenses due to increased regulatory scrutiny.

Towards the beginning of this year, Consensys took a legal stand against the SEC, seeking to counter what it views as regulatory overreach aimed at Ethereum.

This trend of legal resistance is echoed by other significant players in the crypto industry, such as Coinbase and Grayscale, who have also filed lawsuits against the SEC in recent times.