The Zcash Foundation announced that the U.S. Securities and Exchange Commission (SEC) has concluded a multi-year investigation into the organization without recommending any enforcement action.
This decision brings an end to a period of regulatory uncertainty that began quietly over two years ago. The investigation only became publicly known after the foundation received a subpoena in late 2023.
According to the Zcash Foundation, the probe, officially titled "In the Matter of Certain Crypto Asset Offerings (SF-04569)," was initiated in secret. It first surfaced on August 31, 2023, when the SEC issued a subpoena. The regulator has now formally notified the nonprofit organization that it does not intend to pursue enforcement or propose regulatory changes related to this inquiry.
Regulatory Outcome and Market Reaction
The conclusion of the SEC's investigation had an immediate impact on the market. Zcash (ZEC) experienced a significant price increase, jumping approximately 12% to 13% following the announcement. Prices reached around $440 as investors responded positively to the removal of regulatory uncertainty. This market movement reflects a sharp repricing directly attributed to the clarity provided by the SEC's decision.
The Zcash Foundation has characterized the outcome as a validation of its operational approach. They stated that the closure of the investigation underscores their commitment to transparency and compliance while continuing their work on building privacy-preserving financial infrastructure.
Broader Regulatory Backdrop
This resolution also occurs within a context that analysts have described as a broader shift in the SEC's tone, particularly under the Trump administration. Reports indicate that several high-profile crypto-related investigations have been softened or closed. The Zcash Foundation's outcome aligns with this observed pattern of reduced enforcement intensity.
Although the SEC did not issue public comments regarding the specifics of the case, the absence of enforcement actions or remedial recommendations signifies a definitive end to the inquiry.
Internal Turmoil at a Critical Moment
The timing of this announcement is particularly noteworthy. It follows a significant internal governance crisis within the Zcash ecosystem. This crisis occurred after the entire core development team at the Electric Coin Company resigned on January 7, 2026. These departures were reportedly linked to governance disputes, which created uncertainty regarding the project's future operational direction just days before the regulatory news was revealed.
By closing the investigation, the SEC has alleviated a substantial external pressure point for the Zcash Foundation. This comes at a moment when the foundation is still addressing unresolved internal restructuring challenges.