ZCASH (ZEC) Clears SEC Investigation Without Enforcement Action

The U.S. Securities and Exchange Commission (SEC) has concluded its two-year review of the Zcash Foundation without recommending enforcement action or regulatory changes. This development marks a significant win for Zcash, a privacy-focused cryptocurrency, by removing long-standing regulatory uncertainty. The investigation, initiated in August 2023, focused on whether ZEC was a commodity or an unregistered security under U.S. law and whether Zcash's initial funding, token distribution, and Dev Fund arrangements violated securities regulations.

The SEC also examined the use of optional privacy features like zero-knowledge proofs (zk-SNARKs), which allow users to shield transaction details. These features, combined with the foundation's non-profit status and transparent compliance mechanisms, were key factors in the decision to close the probe without action. The Zcash Foundation emphasized that it remained committed to operating within legal frameworks throughout the investigation.