Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
This week, the Zcash Foundation announced that a lengthy investigation by the US Securities and Exchange Commission has concluded without any enforcement actions, providing regulatory clarity to one of the most scrutinized privacy initiatives in the crypto sector during a period of increased token volatility.
In a statement released on Wednesday, the foundation affirmed that the SEC had “completed its review” of an inquiry related to “certain crypto asset offerings.”
We are happy to report that the SEC has finished its review and has informed us that it does not plan to recommend any enforcement action or modifications against the Zcash Foundation concerning this issue. https://t.co/zjxfh3mmst
— Zcash Foundation
(@ZcashFoundation) January 14, 2026
The investigation commenced in August 2023, when the foundation received a subpoena as part of a wider SEC initiative to determine whether certain digital asset offerings were subject to federal securities laws.
This case, internally labeled SF-04569, remained open for over two years.
Zcash’s Privacy Model Under Scrutiny as SEC Review Concludes
The foundation indicated that the outcome was a result of its cooperation throughout the process and its commitment to adhering to current regulatory standards.
It emphasized that its efforts would continue to focus on enhancing privacy-preserving financial infrastructure. Although the SEC did not make a public announcement regarding the matter, the foundation confirmed that it had received official notification that the review was formally concluded.
This decision arrives amid renewed trading activity for Zcash, with ZEC priced at approximately $439 on Wednesday, reflecting an increase of about 13% over the recent trading period, alongside a 24-hour trading volume surge of more than 30% to around $881 million.
Source: CoinGecko
Despite this recovery, the token still trails significantly behind its peak from the earlier cycle, trading over 86% below its all-time high of $3,191 achieved during the 2017 bull market.
One of the most significant elements of privacy-focused cryptocurrencies has consistently been the regulatory scrutiny of such projects, which utilize cryptographic methods to obscure transaction details while remaining operational on public blockchains.
Zcash was launched in 2016 and employs zero-knowledge proofs, allowing users to conduct shielded transactions without revealing information about the sender, recipient, or the transaction amount.
Related Posts
This architecture has placed it at the center of numerous discussions regarding financial surveillance, compliance, and the limits of on-chain privacy.
SEC’s Zcash Decision Reflects Shifting U.S. Regulatory Landscape
The SEC’s examination of the Zcash Foundation occurred concurrently with other investigations impacting the ecosystem.
In previous communications, the agency had requested input from Grayscale Investments regarding whether ZEC could be classified as a security in relation to its Zcash Trust.
SEC officials have also interacted directly with Zcash founder Zooko Wilcox, including participating in roundtable discussions focused on privacy technologies and regulatory supervision.
The conclusion of the Zcash investigation aligns with a larger transition in US crypto enforcement since 2025.
With new leadership and the appointment of Paul Atkins as SEC chair, the agency has dismissed or resolved several high-profile cases initiated under the previous administration.
Paul Atkins was sworn in as SEC Chairman on Monday and is anticipated to have a private ceremony with President Trump in the Oval Office today.#PaulAtkins #SECChair https://t.co/lqyUZN3B7H
— Cryptonews.com (@cryptonews) April 22, 2025
Legal actions against Coinbase and Kraken were dismissed without penalties, inquiries into Robinhood’s crypto division, Uniswap Labs, OpenSea, and Gemini were concluded, and a lengthy investigation into Ondo Finance wrapped up without charges late last year.
While the SEC has persisted in pursuing cases involving alleged fraud, the trend suggests a retreat from extensive enforcement actions solely related to token classification.
The conclusion of the SEC investigation comes at a tumultuous time for Zcash, as governance disputes between the Electric Coin Company and the nonprofit Bootstrap escalated into a public schism, resulting in core developers departing to establish a new independent entity.
@ Zcash Split Update: $ZEC drops 16% as Bootstrap attributes the issue to nonprofit regulations, not mission misalignment or the split#Zcash #BlockchainGovernancehttps://t.co/62gTfuz4lx
— Cryptonews.com (@cryptonews) January 8, 2026
This incident briefly impacted market sentiment, even as network operations continued without interruption and project leaders emphasized that the discord did not compromise Zcash’s fundamental security or privacy assurances.
The post Zcash Foundation in the Clear: SEC Ends Years-Long Probe With No Enforcement Action appeared first on Cryptonews.
