#binance #hype #zec #near
19/05/26 15:02 UTC-04

SEC Ends Investigation Into Zcash Foundation Without Filing Charges

The US Securities and Exchange Commission (SEC) has concluded its investigation into the activities of the Zcash Foundation. According to the foundation’s first-quarter report, regulators declined to recommend any enforcement actions or financial penalties.

The investigation began back in August 2023 following the issuance of an official subpoena.

The regulator’s decision removes a significant layer of regulatory pressure from the developers behind the privacy-focused cryptocurrency Zcash ($ZEC).

Staffing Crisis at ECC

According to the report, the beginning of 2026 proved turbulent for the ecosystem due to internal disagreements within Electric Coin Company (ECC), which had long served as the coin’s primary commercial developer.

Conflicts surrounding governance issues led to the departure of most of ECC’s engineering team in January. Following the news, the network’s native token $ZEC dropped by 20%.

However, the Zcash blockchain continued operating uninterrupted.

“Due to the network’s distributed architecture, block production and user transactions were not interrupted for a single minute. The foundation also deployed additional DNS seeders in the US and Europe after ECC servers stopped responding to requests,” the report stated.

First-Quarter Results

In addition to resolving its dispute with the SEC, the Zcash Foundation reported progress on several technical and governance initiatives aimed at preparing for Network Upgrade 7.

  • developers fixed two critical vulnerabilities (CVE-2026-34202 and CVE-2026-34377) capable of causing node failures and blockchain splits;
  • the team approved guidelines for the use of artificial intelligence in code development;
  • as of 31 March 2026, the foundation held $36.701 million in liquid assets. The majority of reserves were stored in $ZEC (58.6%), US dollars and USDC stablecoins (33.5%), as well as digital gold (7.9%);
  • in February, former Mercy Corps Chief Investment Officer Scott Onder joined the foundation’s board of directors.

Source: Zcash.

Against this backdrop, the blockchain’s native asset rose nearly 8% over the past 24 hours, according to CoinMarketCap data.

At the beginning of May, the market saw a renewed wave of interest in privacy-focused cryptocurrencies, allowing $ZEC to recover close to its peak levels and gain 85% over the past month.

The rally was fuelled by rumours that Multicoin Capital had been quietly accumulating Zcash, along with speculation about a potential Grayscale ETF based on the privacy coin.


$ZEC/USD performance. Source: CoinMarketCap.

See also: "Bloomberg: SEC to Allow Trading of Tokenized Stocks Without Issuer Consent"

#Zcash #U.S. Securities and Exchange Commission (SEC)

Editor: Alyona Nabok
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