The Zcash Foundation recently announced that the U.S. Securities and Exchange Commission (SEC) has concluded its years-long investigation into the organization without issuing any enforcement actions or requiring corrective action. The announcement, made on January 15th, marks a significant milestone for the Zcash ecosystem and the entire cryptocurrency industry in the U.S., amidst a rapidly changing regulatory landscape.
According to Zcash Foundation, the organization received a Chia from the SEC in August 2023 related to an investigation titled “In the Matter of Certain Crypto Asset Offerings,” focusing on cryptocurrency asset issuance activities. After a lengthy review process, the SEC completed its XEM and decided to close the case. A representative of the regulatory agency also emphasized that the SEC does not comment publicly on whether or not investigations are ongoing, thereby indirectly confirming that the matter has been resolved without any legal consequences for Zcash Foundation.
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This development clearly reflects a shift in the SEC's approach to cryptocurrency regulation in recent times. Following Donald Trump's victory in the late 2024 election, the stance of many regulators, including the SEC, has tended towards a more lenient and pragmatic approach compared to the preceding period. Over the past year, the SEC has withdrawn or terminated numerous investigations and enforcement actions targeting large crypto organizations and projects, including Coinbase and several DeFi protocols, marking a reversal from the tough "enforcement-based regulation" strategy under the Biden administration.
Currently, SEC Chairman Paul Atkins is pushing for an update to the legal framework for digital assets through an initiative called “Project Crypto.” The focus of this program is on-chain activities, the transparency of blockchain technology, and the development of regulations that align with the rapidly evolving practices of the industry. Observers believe that the SEC’s closure of the investigation into the Zcash Foundation is also part of a general trend towards creating a clearer legal environment and reducing unnecessary pressure on blockchain projects to comply with the law.
