Zcash Foundation Clears SEC Investigation, No Action Recommended

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TLDR

SEC has concluded its investigation into the Zcash Foundation without recommending any enforcement action.
The investigation, which began with a subpoena on August 31, 2023, lasted nearly two and a half years.
Zcash Foundation reaffirmed its commitment to transparency and regulatory compliance throughout the process.
This resolution provides clarity and removes the uncertainty that had surrounded the foundation’s regulatory standing.
SEC’s decision allows the Zcash Foundation to refocus on its mission of promoting privacy-preserving financial infrastructure.

The Zcash Foundation announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the organization. The SEC confirmed it would not take any enforcement action against the foundation. This marks the end of a nearly two-and-a-half-year investigation, which was kept confidential until now.

SEC Closes Investigation into Zcash Foundation

The SEC launched its investigation into the Zcash Foundation after serving a subpoena on August 31, 2023. The inquiry was part of a broader probe into crypto asset offerings, specifically focused on the foundation’s activities. The investigation, labeled “In the Matter of Certain Crypto Asset Offerings (SF-04569),” raised concerns over the foundation’s compliance with regulatory requirements.

The foundation has expressed its commitment to transparency and regulatory compliance throughout the process. In a statement, it emphasized that the SEC’s decision signals a resolution of the matter and reflects its ongoing efforts to ensure adherence to applicable rules. The closure of the investigation eliminates uncertainty and reassures stakeholders about the foundation’s position.

The End of Uncertainty for Zcash

With the investigation now closed, the Zcash Foundation can refocus its efforts on its core mission of promoting privacy-preserving financial infrastructure. The foundation reaffirmed its dedication to maintaining transparency and compliance moving forward. This outcome provides clarity for investors and other stakeholders who had been uncertain about the foundation’s regulatory standing.

The SEC’s decision is also significant for the broader Zcash ecosystem, which had faced governance challenges recently. Earlier this year, a dispute led to the resignation of the entire Electric Coin Company (ECC) team. The departure of ECC developers sparked concerns within the Zcash community about the project’s future direction and governance structure.

As the investigation concludes, the Zcash Foundation remains focused on its goals of advancing privacy technologies in financial systems. It has reiterated that it will continue to operate in full compliance with regulatory requirements. The foundation emphasized that this outcome demonstrates the importance of its transparent approach.