Zcash Foundation: US SEC Ends Years-long Investigation Without Enforcement Action

In a recent announcement, the Zcash Foundation revealed that the US SEC has officially concluded its years-long investigation into the organization, stating that no enforcement action or remedial measures will be taken.

The foundation disclosed that it received a subpoena from the SEC in August 2023, related to certain crypto asset offerings. The SEC has now completed its review and closed the case. An SEC spokesperson responded by stating that the regulatory agency does not comment on the existence of investigations.

This closure comes amidst a shift in the SEC's stance on crypto regulation. During the Trump administration, the SEC withdrew or terminated enforcement actions or investigations against several crypto entities over the past year, including Coinbase and multiple DeFi projects, signaling a departure from the enforcement-focused approach under the Biden administration.

Current SEC Chairman Paul Atkins is spearheading efforts to update crypto regulatory rules through Project Crypto, with a focus on on-chain activities and technological realities.

It is worth noting that the Zcash ecosystem has experienced recent fluctuations. On January 8th, all employees of Zcash's core development entity, Electric Coin Company, resigned collectively due to structural disagreements with its parent board. The Zcash Foundation emphasized that its commitment to the protocol remains unchanged, and clarified that the Zcash network is independent of any single organization or entity, stating that organizational adjustments within the ecosystem do not equate to a compromised network health.

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