Zcash (ZEC) is back on investors’ radar after U.S. regulators ended a long-running investigation into the Zcash Foundation without enforcement. The decision removes a key source of uncertainty that had followed the privacy-focused cryptocurrency since 2023.
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Markets reacted quickly, with ZEC posting double-digit gains in some sessions and stabilizing above the $400 level. While regulatory clarity has helped improve sentiment, questions around governance and long-term development remain.
ZEC's price trends sideways after a violent move upwards on the daily chart. Source: ZECUSD on Tradingview
SEC Closes Two-Year Zcash Investigation
The U.S. Securities and Exchange Commission confirmed it has concluded its review of the Zcash Foundation, which began with a subpoena issued on August 31, 2023.
The inquiry focused on potential securities law concerns tied to Zcash’s funding model, governance structure, and token distribution. According to the foundation, the SEC does not intend to recommend enforcement action, fines, or operational changes.
This outcome marks a notable shift for privacy-focused cryptocurrencies, which have often faced heightened regulatory scrutiny due to concerns about illicit use. The decision suggests that Zcash’s privacy features alone were not deemed sufficient grounds for action under existing securities laws.
The closure also aligns with a broader trend of the SEC withdrawing from several high-profile crypto investigations in recent months under new leadership. For Zcash, the end of the probe removes a regulatory overhang that had weighed on investor confidence for nearly two years.
Market Reaction and Price Projections
Following the announcement, ZEC surged between 5% and 14% across major exchanges, briefly testing the $440–$450 resistance zone. Currently, the token is trading around $427–$442, holding above the $400 psychological support level.
Technically, ZEC remains in a consolidation phase after falling from its January high near $535. Resistance is clustered around $450–$470, while support sits near $400, with a deeper floor around $350 if sentiment weakens.
Some analysts point to a symmetrical triangle pattern on longer timeframes, often viewed as a continuation structure after strong rallies. A confirmed breakout above the upper trendline could open the door toward higher levels, including a potential retest of the $1,000 mark later in 2026.
Governance Uncertainty Clouds the Outlook
Despite the regulatory win, internal challenges persist. Earlier this month, the full development team at Electric Coin Company (ECC), which has led core Zcash development, resigned following a dispute with its nonprofit board.
Former ECC leaders cited deteriorating working conditions and have since announced plans to launch a new privacy-focused wallet, cashZ, based on Zcash technology.
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The Zcash Foundation has stated that network operations and protocol stability remain unaffected by the personnel changes. Still, the departures have raised concerns about governance stability, development continuity, and long-term coordination within the ecosystem.
Cover image from ChatGPT, ZECUSD chart from Tradingview