SEC Ends Probe Into Zcash Foundation, No Charges Recommended

SEC closes review of Zcash Foundation’s digital-asset offering with no enforcement action; Zcash price jumps as Electric Coin Company staff exits and privacy debates spotlight regulatory shifts

  • The ZCash Foundation said the U.S. Securities and Exchange Commission closed a review into its digital asset offering without recommending enforcement action.
  • The foundation said it learned of the SEC review in August 2023 and posted the outcome in a blog post.
  • Zcash’s price sat near $437, up about 12% over 24 hours and roughly doubled over three months.
  • Separately, staff exits at Electric Coin Company raised concerns after the CEO said the team was “constructively fired” and planned a new company to continue “building unstoppable private money.”
  • The episode follows wider shifts in SEC approach under Chair Paul Atkins and recent industry discussions on surveillance and privacy led by Commissioner Hester Peirce.

The Zcash Foundation said on Wednesday that the U.S. Securities and Exchange Commission closed a review into the nonprofit’s offering of digital assets and did not recommend enforcement action. The foundation said regulators alerted it to the review in August 2023 and published the outcome in a blog post. The group said the result highlights its commitment to transparency and regulatory compliance.

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The SEC declined further comment and said, “The SEC does not comment on the existence or nonexistence of a possible investigation.” The foundation said it remains focused on advancing privacy-preserving financial infrastructure and stewarding the Zcash protocol.

Zcash traded around $437, a roughly 12% gain in one day, and the token’s price has nearly doubled over three months amid mixed market conditions. The statement comes as the SEC’s posture toward crypto has shifted since the re-election of the U.S. president and the appointment of Paul Atkins, with regulators stepping back from probes into firms including Coinbase and Ripple.

Privacy issues have also drawn regulatory and industry attention. Commissioner Hester Peirce’s crypto task force recently held a roundtable on surveillance and privacy that included an invitation to Zooko Wilcox. At the event, Wilcox read a statement from his mother that said, “financial surveillance makes us all a guinea pig.”

Wilcox has also said the SEC once launched an investigation against him and his former company “for fraud.” He called the inquiry unfair and said his team provided the requested subpoena information but then heard nothing. The recent news follows a dramatic exit at Electric Coin Company, where CEO Josh Swihat said staff were “constructively fired” and planned to form a new company to continue “building unstoppable private money.” The Zcash Foundation later addressed the disruption in a blog post, saying the network’s future is not tied to any single organization.

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