The U.S. Securities and Exchange Commission (SEC) has officially closed its multi-year investigation into the Zcash Foundation, according to a statement published on the nonprofit organization’s blog on Wednesday. The announcement marks a significant regulatory milestone for the privacy-focused crypto ecosystem.
The Zcash Foundation revealed that it received a formal information subpoena from the SEC in August 2023, related to an inquiry titled “In the Matter of Certain Crypto Asset Offerings (SF-04569).” After completing its review, the regulator informed the Foundation that it does not intend to recommend any enforcement action or require corrective measures in connection with the investigation.
A spokesperson for the SEC declined to comment on the matter, reiterating the agency’s standard position that it “does not confirm or deny the existence of investigations.”
The decision comes amid a broader shift in the SEC’s regulatory stance toward crypto under U.S. President Donald Trump. Over the past year, the agency has withdrawn dozens of lawsuits against major crypto firms, including Coinbase, and has terminated multiple investigations involving DeFi protocols and other industry participants. This represents a notable reversal from the previous administration, during which the SEC pursued a more aggressive enforcement-first approach—one that originally led to the Zcash Foundation review.
SEC Chairman Paul Atkins is now advocating for a revised regulatory roadmap for digital assets, highlighted by the “Project Crypto” initiative, which aims to modernize the agency’s framework with a stronger focus on on-chain activity and technological realities.
The announcement also follows recent turbulence within the Zcash ecosystem. On January 8, reports emerged that the entire staff of Electric Coin Company, the primary developer of Zcash, resigned following governance disputes with the board of its parent nonprofit, Bootstrap. In response, the Zcash Foundation emphasized that its commitment to the protocol remains unchanged, stressing that the Zcash network is decentralized and independent of any single organization or corporate entity.
Following the news, ZEC surged more than 10%, while other privacy-focused tokens such as XMR, DASH, and ICP also recorded notable gains.
This article is for informational purposes only and reflects personal analysis. It does not constitute investment advice. Readers should conduct their own research before making any financial decisions. The author bears no responsibility for investment outcomes.
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