The Zcash Foundation said the U.S. Securities and Exchange Commission has officially closed its 2023 investigation into the privacy-focused cryptocurrency without pursuing enforcement action.
In a statement released Wednesday, the foundation confirmed the SEC concluded its review and would not recommend penalties or regulatory changes related to Zcash. The probe began in August 2023 after the foundation received a subpoena tied to certain crypto asset offerings.
The decision marks a significant regulatory milestone for Zcash, which has long faced scrutiny due to its privacy-preserving technology. The foundation said the outcome reflects its commitment to compliance while continuing to build privacy-focused financial infrastructure.
The move comes amid a broader shift in U.S. crypto regulation under President Donald Trump, with the SEC dropping several investigations into major crypto firms over the past year. Regulators have signaled a softer enforcement stance while Congress works toward a clearer market structure framework.
ZEC reacted positively to the news, rising as much as 7% during early trading before paring gains. Market sentiment improved as traders interpreted the closure as reduced regulatory overhang for privacy coins.
Attention now turns to Capitol Hill, where lawmakers are preparing to debate the CLARITY Act. The bill aims to define how the SEC and CFTC divide oversight of digital assets, potentially reshaping the regulatory landscape for cryptocurrencies in the U.S.
