- SEC closes Zcash Foundation investigation with no charges, fines, or required changes.
- ZEC jumps 10–14% as traders price in reduced regulatory risk.
- Analysts flag $450 as a key resistance level for Zcash’s next move.
The U.S. Securities and Exchange Commission has closed its investigation into the Zcash Foundation without taking any enforcement action, bringing relief to the privacy-focused crypto sector after more than two years of uncertainty.
The probe began in August 2023, when the Zcash Foundation received a subpoena as part of a wider SEC inquiry into certain crypto asset offerings. On Thursday, the foundation said the regulator has now completed its review and confirmed it does not plan to pursue charges, fines, or require any changes.
“This outcome reflects our commitment to transparency and regulatory compliance,” the Zcash Foundation said, adding that it will continue focusing on building privacy-preserving financial infrastructure.
Market Reacts Quickly
Following the announcement, Zcash’s token, ZEC, jumped between 10% and 14%, as traders priced in lower regulatory risk. At the time of writing, ZEC is trading at $432.
One analyst said Zcash (ZEC) is pushing back toward the $450 resistance level, supported by a rising trendline and improving momentum indicators.
Source: X
However, the analyst warned that the price is currently stuck in a choppy middle zone, making it risky for new trades. According to the analyst, long positions only make sense if ZEC breaks clearly above $450 with strong follow-through.
Related: Vitalik Buterin Says Core Web3 Vision Is Reemerging as Ethereum Scales
Other privacy-focused tokens also stayed in focus. Monero and Dash, which had rallied sharply earlier in the week, saw some consolidation but remained among the top performers.
Why This Matters for Privacy Coins
Analysts say the SEC’s decision could be an important signal for the privacy coin space. While it does not create a blanket approval, it suggests that privacy-focused protocols operating within compliance boundaries may face less regulatory pressure than previously feared.
Source: Cryptorank
Privacy coins have been one of the strongest-performing crypto narratives recently, even during periods of broader market weakness. Over the past year, privacy-focused cryptocurrencies with market capitalizations above $500 million have consistently outperformed the wider market.
Tokens such as ZEC, XMR, and DASH have outperformed Bitcoin and Ethereum over certain periods, pointing to a rotation toward niche themes.
Related: Why are Privacy Tokens Surging Today?
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
