(Bloomberg) — Consensys, the software provider for the Ethereum network sued by the SEC, partly blamed regulatory uncertainty caused by the agency for its decision to eliminate 162 positions, or 20% of its workforce.

The New York-based company, led by Joseph Lubin, one of Ethereum’s co-founders, also touched on broad macroeconomic conditions. Ether, the network’s native token, is the second largest cryptocurrency by market capitalization after Bitcoin.

“The numerous cases before the SEC, including ours, represent meaningful jobs and productive investments lost due to the SEC’s abuse of authority and Congress’ failure to address the problem,” Lubin wrote in a blog post Tuesday.

In addition to operating the popular crypto wallet MetaMask, Consensys also offers a number of blockchain tools and products. The company, which laid off approximately 11% of its workforce at the beginning of 2023, was the target of regulations this year.

In April, Consensys announced that it had received notice from the SEC that the regulator could file a lawsuit against the company regarding MetaMask products. That same month, the company filed a lawsuit with the SEC in an attempt to fend off regulation of the Ethereum blockchain and challenge the agency.

In late June, the SEC said Consensys broke its rules after failing to register as a brokerage firm and improperly collecting millions of dollars in fees. The SEC said Consensys has brokered more than 36 million crypto transactions since 2020, including at least 5 million securities.

This year also marked the debut of funds traded on cryptocurrency exchanges in the US, which is considered a turning point for the digital asset industry. Bitcoin funds approved in January saw stronger demand than those holding Ether approved in July. Ether has gained nearly 16% this year, compared to a more than 70% rise in Bitcoin.

According to data compiled by CoinShares, investment products holding Ether saw outflows of $35 million last week; this was the largest of all digital assets during the period.

–With help from Olga Kharif.

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