The US Securities and Exchange Commission (SEC) has wrapped up its investigation into the Zcash Foundation, bringing clarity to the future of the privacy-centric cryptocurrency. According to the results published in the material, this decision comes after a thorough inquiry that began with a subpoena issued in late August 2023.
SEC Investigation Overview
The SEC's investigation primarily examined Zcash's funding model, governance structure, and token distribution to assess potential violations of securities laws. However, the regulatory body has announced that it will not pursue any enforcement actions, fines, or operational changes against the Zcash Foundation.
Impact on Zcash and Market Reaction
This resolution has alleviated significant regulatory uncertainty surrounding Zcash, resulting in a notable increase in the price of ZEC across major cryptocurrency exchanges. Investors and stakeholders are now optimistic about the future of Zcash as the SEC's decision signals a more favorable regulatory environment for privacy-focused digital assets.
Following the SEC's recent decision regarding Zcash, three Democratic lawmakers are now demanding accountability from the agency concerning its closure of various cryptocurrency investigations. For more details, see read more.
