Zcash Foundation Confirms SEC Closure While ZEC Price Surges

TLDR

• Zcash Foundation confirmed that the US SEC closed its investigation without taking enforcement action.
• The report stated that the inquiry began after a subpoena issued in August 2023.
• Zcash Foundation said the closure removed regulatory pressure and improved operational clarity.
• The network continued to function smoothly despite internal disruption at Electric Coin Company.
• Blocks were produced consistently, and transactions settled without any interruption.

Zcash Foundation released its Q1 2026 report outlining regulatory updates, network stability, and protocol progress. The report confirmed the closure of a US SEC investigation without enforcement action. Meanwhile, ZEC extended its rebound and traded near $573 during the reporting period.

Zcash Foundation confirms SEC case closure and regulatory clarity

Zcash Foundation stated that the US Securities and Exchange Commission ended its inquiry without enforcement action. The agency initiated the investigation after issuing a subpoena in August 2023.

The foundation said the closure removed regulatory pressure and provided clearer operational direction. It also confirmed that the SEC informed the organization directly about its decision.

Zcash Foundation described the quarter as one of its most consequential operational periods. The report cited governance shifts, infrastructure work, and protocol upgrades across the ecosystem.

The organization noted that regulatory clarity allows continued development without legal uncertainty. It emphasized that ongoing work will proceed under clearer compliance conditions.

Network Stability, Upgrades, and ZEC Price Recovery Continue

Zcash Foundation reported that the network remained stable during internal disruptions at Electric Coin Company. Governance disputes led to the exit of much of ECC’s development team.

Despite these changes, blocks continued production and transactions settled without interruption. The foundation confirmed that user funds and privacy features remained secure.

The report highlighted infrastructure improvements, including new DNS seeders in the US and Europe. It also referenced multiple Zebra updates and two resolved security issues.

Zcash Foundation advanced development of the Z3 stack and continued zcashd deprecation work. It also expanded RPC coverage and progressed FROST tooling development.

The foundation reported average monthly operating costs of $272,539 during the quarter. Total expenses reached $817,618 across Q1.

Its balance sheet showed $36.7 million in liquid assets by March 31. This included 85,412 ZEC valued at $21.2 million at $248.22 per coin.

ZEC traded near $573 at press time, extending gains of more than 160% since late March. The rally followed renewed demand for privacy-focused digital assets.

The report also referenced a prior surge from $74 in October 2025 to above $630. Institutional attention and privacy demand supported that earlier price increase.

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