The U.S. Securities and Exchange Commission has officially closed its investigation into the Zcash Foundation, and it’s doing so without taking any action.
The probe started back in 2023 and focused on whether Zcash’s funding setup or governance raised any securities law concerns. On January 14, the foundation said the SEC informed them that no charges would be filed and no changes would be required.
For the Zcash community, this brings long-awaited relief. The project had been operating under a cloud of regulatory uncertainty for more than two years. With that cloud now gone, confidence quickly returned to the market.
After the news broke, Zcash’s token, ZEC, jumped sharply, rising around 10% to 14% as traders reacted positively. Investors clearly welcomed the removal of a major regulatory risk.
Zcash is best known for its privacy-focused features, especially shielded transactions that allow users to verify activity on the blockchain without revealing sensitive details. The foundation said the SEC’s decision reflects its ongoing effort to stay transparent and compliant while continuing to build privacy-first financial tools for everyday users.
This outcome also fits into a broader pattern. Recently, the SEC has stepped back from several crypto-related cases without enforcement, signaling a softer tone toward parts of the industry.
That said, challenges remain inside the Zcash ecosystem. Earlier this month, the full development team at Electric Coin Company stepped down after a governance dispute with its nonprofit board. The former developers have since started a new company and announced plans for a new wallet built on Zcash technology.
Even with those internal issues still unfolding, the end of the SEC investigation removes a major external pressure. For Zcash, it marks a fresh chapter—one with fewer regulatory questions and more room to focus on the road ahead.
