SEC Invites Zcash Founder to Discuss Financial Privacy
The U.S. Securities and Exchange Commission (SEC) has extended an invitation to Zcash founder Zooko Wilcox to participate in a roundtable discussion on December 15, focusing on the critical issues of privacy and financial surveillance. This invitation arrives at a time of significant discourse surrounding privacy features in cryptocurrencies, particularly in light of contrasting views from prominent figures in the industry.
The SEC's Crypto Task Force will host this important roundtable at its headquarters. The proceedings will be publicly webcast, allowing for broad access to the discussions. This event marks a significant step for regulators and industry participants as they aim to navigate the complexities of privacy in the digital financial landscape.
Growing Interest in Privacy Technologies
The SEC roundtable underscores a growing trend of other blockchain projects actively developing and launching privacy-related products and services. This indicates a broadening acceptance and exploration of privacy-enhancing technologies within the cryptocurrency ecosystem.
In October, Paxos and Aleo announced a collaboration to create a private and compliant stablecoin. Concurrently, the Ethereum Foundation established a dedicated privacy team, signaling a commitment to integrating privacy solutions into its network. These developments, coupled with increasing institutional interest and ongoing philosophical debates, place Zcash at the forefront of the conversation about financial privacy in the digital age.
Clash Between Bitcoin Maximalists and Privacy Advocates
The SEC's announcement of the roundtable coincides with an intensifying philosophical debate regarding financial privacy within the cryptocurrency space. This debate has been particularly pronounced between Bitcoin maximalists and proponents of privacy-focused cryptocurrencies like Zcash.
On December 5, Eli Ben-Sasson, a founding scientist of Zcash and current CEO of StarkWare, shared details of a conversation with Michael Saylor, founder of Strategy. Saylor expressed his opposition to incorporating Zcash-style privacy features into Bitcoin, arguing that such additions could enable nation-states to potentially shut down the flagship cryptocurrency.
Ben-Sasson countered Saylor's assertion, suggesting that it is possible to implement privacy features without compromising Bitcoin's core functionality. He proposed that allowing selective viewing of keys alongside shielding mechanisms could offer a balanced approach.
This discussion echoes sentiments previously expressed by Hunter Horsley, CEO of Bitwise, who posted on X (formerly Twitter) in November. Horsley commented on the challenges faced by the "Bitcoin only, everything else is a scam" community in addressing Zcash, anticipating "creative explanations of why Zcash is not crypto." His remarks ignited a robust debate, drawing renewed attention to Zcash and contributing to its price surge towards $700 in November.
Privacy advocate Naomi Brockwell also weighed in last month, highlighting the importance of privacy protections. She stated, "Authoritarians thrive when people have no privacy. When those in charge start being hostile to privacy protections, it is a major red flag." Her comments emphasize the broader societal implications of privacy in digital finance.
Zcash Gains Momentum Amidst Institutional Interest
Following the exchange between Saylor and Ben-Sasson, Zcash experienced a notable price recovery, regaining its footing above the $375 level on December 5. While trading near $340 at the time of writing, down 10% in the preceding 24 hours, its recent performance shows resilience after a late November decline. In November, Zcash had briefly surpassed $700, reaching its highest price point in a significant period.
Institutional interest in Zcash has been on the rise. Grayscale has filed an S-3 registration statement with the intention of converting its existing Zcash Trust into a spot exchange-traded fund (ETF). If approved, this would mark the first Zcash ETF in the United States. As of September 30, 2025, the Grayscale Zcash Trust held approximately 2.4% of the total ZEC in circulation.
Furthermore, Reliance Global Group, a Nasdaq-listed insurance entity, has converted its entire digital treasury into Zcash. Jan van Eck, CEO of VanEck, has also identified Zcash as a potential alternative to Bitcoin, citing growing concerns about Bitcoin's long-term cryptographic security and inherent privacy limitations.