Zcash Escapes Scrutiny As SEC Closes Investigation

The SEC has closed its investigation into the Zcash Foundation without filing charges. Indeed, the investigation, opened in 2023, focused on certain crypto offerings. This decision temporarily eases the regulatory pressure on Zcash, a project often criticized for its use of privacy-preserving transaction technologies. In a context where privacy coins are regularly targeted by authorities, the dropping of the investigation marks a notable turning point.

An investigation closed without further action by the SEC

The Zcash Foundation announced it has been cleared by the Securities and Exchange Commission (SEC) following an investigation opened in August 2023, which concerned some of its activities related to crypto offerings, while developer activity continues to decline.

In a statement published on Wednesday, January 10, 2026, the foundation declares that the regulatory authority has concluded its review and will not recommend any enforcement action, meaning no legal proceedings or sanctions.

This investigation was initiated following a subpoena received by the foundation in summer 2023. The Zcash Foundation welcomes this outcome, which it presents as the result of its commitment to transparency and compliance with applicable regulatory requirements.

Here are the main known elements at this stage :

• August 2023 : The Zcash Foundation receives a subpoena from the SEC as part of an investigation into certain crypto offerings ;

• The subject of the investigation : not publicly specified, but related to compliance questions around possible unregistered offerings ;

• January 10, 2026 : The foundation announces the end of the investigation, without charges or recommended action from the SEC ;

• The official statement highlights the foundation’s commitment to a privacy-respecting financial infrastructure for the common good.

Despite the lack of information on the precise on-chain data examined by the SEC, this decision represents relief for the Zcash ecosystem, often targeted by regulators due to its privacy-focused model.

The tone adopted by the foundation in its communication, sober, institutional, and focused on compliance, suggests a desire to ease tensions with authorities. This could also serve as a reference for other crypto projects facing similar regulatory risks.

Towards a more flexible regulatory climate in the United States ?

The SEC’s decision not to pursue Zcash fits into a broader dynamic observed in recent months in the United States: an apparent pullback of coercive actions from the federal agency against several crypto projects.

Under the current administration, succeeding Joe Biden’s, the SEC appears to be initiating a change in stance, moving away from an aggressive regulatory strategy that characterized recent years. This shift, though partial, could be significant for privacy-focused tokens long seen as potential targets for non-compliance.

Alongside these decisions, the U.S. Congress is working on a legal restructuring of the regulatory framework, notably reviewing the CLARITY Act. This bill aims to clarify the respective authorities of the SEC and the Commodity Futures Trading Commission (CFTC) in crypto oversight.

The Agriculture Committee is also set to review an alternative draft of the bill on January 27. The stated goal is to resolve current ambiguity and provide more stable guidance to ecosystem players.

Zcash wavers under the weight of increased scrutiny but so far avoids sanctions. The SEC’s decision temporarily suspends the threat without dispelling doubts. For privacy stakeholders, this outcome highlights an ambivalent reality: tolerance exists but remains fragile, subject to political balances and shifting legal lines.