SEC closes probe into Zcash Foundation as ZEC rallies 13%

Beincrypto reports the U.S. Securities and Exchange Commission has closed its investigation into the Zcash Foundation and informed the nonprofit it does not intend to recommend any enforcement action or other regulatory changes tied to that matter. The probe began in August 2023 under a broad inquiry called “Certain Crypto Asset Offerings,” during which the SEC issued a formal subpoena seeking information on whether Zcash-related funding, governance, or token distribution could fall under U.S.

securities law. The agency’s decision to end the review without recommending charges, fines, or compliance changes removes a legal overhang that had followed Zcash for more than two years. ZEC traded near $440, rising about 13% on the day with heavy volume as traders priced in lower regulatory risk.

The clearance followed a separate governance crisis this month, when the entire core development team at Electric Coin Company resigned after a public dispute with the Bootstrap Foundation, a move that earlier pushed ZEC down more than 20%. Stakeholders have since worked to clarify that the blockchain remains decentralized and operational, the team is restructuring as a startup, and independent developers, node operators, and miners continue to run the network.

Key Topics

Crypto, Zcash Foundation, Zec, Electric Coin Company, Bootstrap Foundation, Sec