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SEC Closes Zcash Foundation Review With No Enforcement Action

The decision removes a regulatory overhang for the privacy-focused project.

Overview

  • The Zcash Foundation said the SEC informed it that no enforcement would be recommended, concluding a review that began with an August 31, 2023 subpoena labeled “In the Matter of Certain Crypto Asset Offerings (SF-04569).”
  • ZEC rose roughly 10%–13% to about $437 after the disclosure, with trading activity increasing across major venues.
  • The existence of the federal inquiry had not been widely known until the foundation announced its closure.
  • Reporting indicates the review examined Zcash’s funding and governance, including the Dev Fund, as well as privacy features with potential AML implications.
  • The resolution reduces regulatory risk for Zcash, though governance and development strains persist following recent departures of core developers at Electric Coin Company.