SEC Clears Zcash Investigation With No Enforcement Action

How Zcash Ended Up Under SEC Scrutiny

The SEC investigation began on August 31, 2023, when the Zcash Foundation received a formal subpoena. This subpoena fell under a broader SEC inquiry titled “In the Matter of Certain Crypto Asset Offerings (SF-04569)”.

At the time, the SEC examined whether elements of Zcash violated U.S. securities laws. Specifically, regulators reviewed token distribution, funding mechanisms, governance structures, and privacy features such as zk-SNARK-powered shielded transactions. These areas remained under review until the SEC clears Zcash investigation in January 2026.

Importantly, this investigation marked the first known SEC action directly targeting the Zcash Foundation. Prior to 2023, no public SEC enforcement or subpoena against Zcash had been documented.

By comparison, other crypto projects faced prolonged legal battles. For example, Ripple entered litigation with the SEC in 2020, with the case dragging on for years and ending only in partial outcomes.

ZEC Surges After SEC Clears Zcash Investigation

Loading chart...

Following the announcement, market sentiment turned sharply bullish. Traders and investors quickly responded to the removal of a regulatory overhang that had existed since the 2023 subpoena.

Within hours, $ZEC rallied by roughly 10 to 14 percent. Prices moved into the $437 to $445 range across major exchanges, with brief spikes reported near the upper end of that range after the SEC clears Zcash investigation.

At the same time, trading activity accelerated. Several market trackers reported a strong increase in 24-hour volume, with some estimates pointing to a surge of nearly 39 percent. This rise in volume confirmed that new buyers were entering the market rather than prices moving on low liquidity.

Overall, the market reaction reflected renewed confidence in Zcash’s regulatory position and its long-term outlook in the U.S. the announcement, market sentiment turned sharply bullish.

After SEC Clears Zcash Investigation

Looking ahead, the SEC’s decision marks a major milestone for Zcash and privacy-focused cryptocurrencies more broadly. By closing the investigation with no enforcement action, regulators effectively removed a key uncertainty that had weighed on $ZEC for more than two years.

As a result, Zcash now operates with clearer regulatory footing in the U.S. At the same time, demand for financial privacy continues to grow. Zcash’s zk-SNARK technology positions the network to benefit from this trend as users seek secure and selective disclosure tools.

Moreover, as crypto regulation evolves toward clearer and more balanced frameworks, Zcash appears well positioned to advance its mission.