SEC Closes Zcash Foundation Probe as Regulatory Tone Softens

The U.S. Securities and Exchange Commission has formally wrapped up its long-running inquiry into the Zcash Foundation, bringing regulatory clarity to the nonprofit behind the privacy-focused cryptocurrency ZEC.

In a blog post published Wednesday, the foundation revealed that it was notified the SEC does not plan to pursue enforcement or require corrective measures. The investigation stemmed from a subpoena issued in August 2023, tied to an inquiry labeled “In the Matter of Certain Crypto Asset Offerings (SF-04569).”

“We are pleased to share that the SEC has concluded its review and informed us it will not recommend any enforcement action against the Zcash Foundation,” the organization said.

An SEC spokesperson declined to confirm details, reiterating the agency’s long-standing policy of not commenting on potential or closed investigations.

The outcome reflects a broader recalibration at the SEC under the Trump administration. Over the past year, the regulator has quietly dropped dozens of crypto-related cases and probes, including actions involving major players like Coinbase and several DeFi protocols. This marks a clear shift from the more aggressive enforcement posture seen during the Biden administration, when many of those investigations — including the Zcash review — were initiated.

SEC Chair Paul Atkins has emphasized a new direction through “Project Crypto,” an initiative aimed at modernizing securities rules with greater attention to onchain activity and digital asset markets.

The regulatory resolution comes during a turbulent period for the Zcash ecosystem. Earlier this month, the entire staff of the Electric Coin Company, Zcash’s primary developer, resigned following a governance dispute with its parent nonprofit board, Bootstrap.

Despite the upheaval, the Zcash Foundation has sought to reassure users and investors. In a Jan. 8 statement, the foundation stressed that its role and obligations to the protocol remain intact, underscoring that Zcash’s network operates independently of any single organization or leadership group.

“Organizational changes do not define the health of the network,” the foundation said, emphasizing Zcash’s decentralized design and long-term resilience.