According to its Q1 2026 report, the Zcash Foundation stated that the SEC's investigation into the project has officially closed without issuing any enforcement recommendations. This is XEM as a significant step forward for the privacy-focused cryptocurrency ecosystem, especially given the increased scrutiny of the crypto industry by US regulators over the past several years.
The report also revealed that during the same period, governance disputes at Electric Coin Company led to the departure of a large portion of the development team. Despite this, the Zcash network continued to operate stably, maintaining normal Block creation and transaction confirmation processes, without affecting user assets or core security and privacy features. This demonstrates how the decentralized nature of the network helped the ecosystem maintain its operational capability even amidst core development team changes.
