Crypto Startup Circle Lays Off 10% of Staff, Citing Market Conditions, Restrictive Regulatory Climate

Crypto startup Circle has laid off around 30 people, or roughly 10 percent of its current employees.

According to Circle CEO Jeremy Allaire, the firm—which owns cryptocurrency exchange Poloniex, equity crowdfunding site SeedInvest, and the USDC stablecoin in collaboration with Coinbase—is seeking to decrease costs.

“We made these changes in response to new market conditions, most importantly, an increasingly restrictive regulatory climate in the United States,” Allaire stated. “Circle remains strong and healthy, and we will continue to drive new product innovation and growth globally, working with jurisdictions that offer forward-looking policies regulating digital asset businesses, while we press for more balanced crypto policy in the U.S.”

Allaire published a blog post on May 20, specifying how Circle was forced to geofence some assets on Poloniex from U.S. customers because of regulatory uncertainty.

The cuts seem to largely impact the firm’s Boston headquarters, a person familiar with the matter said. In the New York office of the company, cuts were made across the product and finance departments, the source stated. Some unfilled positions were removed also.

Last month, the Financial Industry Regulatory Authority (FINRA) awarded Circle SeedInvest a securities trading license.