Zcash Foundation’s SEC Probe Ends Without Action

TLDR

• Zcash Foundation’s SEC investigation ends without enforcement action, providing regulatory clarity.
• Zcash faced internal disruptions after the resignation of several core team members earlier this year.
• Zcash’s price increased by 12.5%, reaching $437.28, following the SEC’s closure of its investigation.
• The SEC’s decision marks the first positive news for ZEC in 2024 after a difficult period.
• Zcash’s market cap grew by 12.51%, reaching $7.2 billion, while trading volume increased by 21.77%.

The Zcash Foundation confirmed the U.S. SEC has concluded its investigation without recommending any enforcement action. This development brings regulatory relief to the foundation, following internal disruptions after the departure of core team members.

SEC Investigation Ends Without Enforcement

On August 31, 2023, the Zcash Foundation received a subpoena from the U.S. Securities and Exchange Commission. The inquiry was titled “In the Matter of Certain Crypto Asset Offerings (SF-04569).” The SEC has now ended the investigation without proposing any enforcement or further action.

The foundation publicly confirmed the conclusion of the SEC’s review on its official website. It stated, “The SEC has informed us that it does not intend to recommend any enforcement action.” This notification ends a period of uncertainty for the privacy-focused project.

The foundation emphasized its commitment to transparency and compliance. It said this result reflects its efforts to align with regulatory expectations. No penalties or operational changes were required from the foundation as part of the conclusion.

Zcash Gains Relief Following Internal Team Exit

Earlier this year, Zcash faced pressure after a major portion of its team resigned. Reports indicate that its members left the project. The development created concerns about the project’s future direction and internal stability.

This resolution from the SEC brings the first positive development for ZEC in 2024. The foundation has not announced any leadership replacements or structural changes. However, it continues to focus on privacy-first financial infrastructure.

The Zcash Foundation reaffirmed its mission to build public goods for financial privacy. It has resumed normal operations and communications. The SEC has not issued additional comments on the matter as of now.

ZEC Price Jumps Over 12%

After the core team exited, Zcash price plunged 20%, but as of press time, CoinMarketCap data reveals that Zcash (ZEC) trades at 437.28, marking a 12.5% increase over the last 24 hours. The market cap followed with a 12.51% rise, reaching $7.2 billion. Trading volume rose by 21.77%, climbing to $791.52 million within the same time.

The ZEC price chart shows a steep early spike followed by a brief decline, then steady upward momentum with multiple short corrections. Following this, the price gradually increased, reaching new intraday highs, with the price hitting a session high of approximately $443.