🛡️ SEC closes investigation into Zcash Foundation - no enforcement action
Zcash Foundation confirmed that the U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into the foundation without any enforcement actions, penalties, or required changes.
The investigation lasted more than two years and began in August 2023, when the foundation received a subpoena as part of the SEC’s broader inquiry titled “In the Matter of Certain Crypto Asset Offerings.”
🔍 What was the SEC examining?
According to available information, the SEC reviewed:
💥the funding model for Zcash development
💥the distribution of ZEC tokens
💥the organizational structure of the foundation and its nonprofit
#Status 💥whether any of these elements could fall under U.S. securities
#LAWS 💥In the end, the SEC determined that there was no basis for enforcement action.
📉📈 Why this matters (beyond Zcash)
This decision is widely seen as:
🟢 a positive signal for privacy-focused cryptocurrencies
🟢 confirmation that privacy does not automatically imply illegality
🟢 an indication of a softening regulatory stance toward crypto in the U.S.
Legal analysts note that the SEC has increasingly been closing long-running crypto investigations without court action, including cases involving major crypto projects.
💰 Market reaction
Following the announcement:
$ZEC saw a short-term price increase (double-digit gains within 24 hours on some markets) overall sentiment around Zcash improved significantly, especially among long-term holders
🧠 Bottom line
This does not mean that Zcash is permanently “regulator-approved,” but it does mean:
✔️ the SEC found no violations of securities law
✔️ a major regulatory overhang has been removed
✔️ it sets a strong precedent for other privacy-focused projects