Zcash Foundation confirms SEC review closure without enforcement, easing regulatory pressure, amid governance turmoil, market volatility, and ongoing privacy coin scrutiny.
Bitcoin-focused regulatory debates often dominate headlines. However, Zcash has now entered focus following regulatory clarity. Recently, the Zcash Foundation confirmed relief after a long US Securities and Exchange Commission review. This development comes against a backdrop of stress in internal governance and broader uncertainty in privacy-focused cryptocurrencies.
SEC Review Ends Without Enforcement Action
The Zcash Foundation revealed that it had received a subpoena from the US SEC on August 31, 2023. The inquiry was in relation to certain crypto asset offerings under reference to SF-04569.
We are pleased to announce that the SEC has concluded its review and informed us that it does not intend to recommend any enforcement action or other changes against Zcash Foundation regarding this matter. https://t.co/zjxfh3mmst
— Zcash Foundation 🛡️ (@ZcashFoundation) January 14, 2026
After making its assessment, the SEC told the foundation it would not recommend enforcement action. Moreover, the agency verified that there were no further regulatory plans. This result eliminates a nagging compliance issue for the nonprofit organization.
Privacy coins have had little in the way of regulatory clarity. Therefore, this decision gives little reassurance. It also coincides with a general shift noted in early 2025. In the past, the SEC has shut down cases involving Coinbase and Consensys without enforcing.
However, there was no public confirmation of closure related to Zcash previously. Thus, regulatory relief is now formally confirmed by the foundation’s statement. Market observers take this as a small positive sign for privacy-oriented projects.
Despite this relief, there is still a lack of regulatory certainty at a broader scale. Privacy coins also remain under fire because of compliance issues. Therefore, this decision does not mean regulatory certainty for Zcash or similar networks in the long run.
Governance Crisis and Market Pressures Persist
Regulatory clarity came into play as Zcash was facing internal governance disruption. In early January of 2026, the Electric Coin Company developer team resigned in full. The team has pointed to governance disputes with Bootstrap’s nonprofit board as their fundamental problem.
According to statements, terms of employment were changed unexpectedly. As a result, developers said that they were unable to work effectively. This resignation had added to uncertainty about Zcash’s near-term development roadmap.
In response, the Zcash Foundation stressed on the principles of decentralization. Again, it repeated that Zcash is an open-source network. Moreover, it emphasized that the protocol is not dependent on any one organization.
This was to soothe community fears. Still, market reaction was quick. After the announcement of the resignation, ZEC price reduced by almost 20%. Later, prices recovered somewhat amid general market stabilization.
Beyond internal problems, there are still significant external headwinds in the form of regulation. Although US sentiment softened somewhat late in 2025, challenges around the globe continue to grow. Notably, new European Union anti-money laundering rules will come into play by 2027.
These rules may limit service providers from listing privacy coins. Consequently, exchanges were able to reduce exposure to assets such as ZEC. Such measures are risky to create liquidity pressure and decreased accessibility.
Nevertheless, the SEC’s decision eliminates one layer of uncertainty. It enables Zcash stakeholders to focus their attention on governance reform. It also puts focus on protocol sustainability and ecosystem trust.
Overall, the closing of the SEC review provides regulation breathing room. However, Zcash’s future is dependent on the resolution of governance disputes and unpredictable rules that are changing in the global space. Market participants remain wary but are on their guard for further developments.