SEC concludes its review of Zcash Network and doesn’t intend to take any enforcement action

The U.S. Securities and Exchange Commission concluded its review of the Zcash Foundation on Wednesday. The agency also informed the public charity that it doesn’t intend to take any enforcement action or other charges against Zcash Foundation regarding its crypto offerings. 

The SEC subpoenaed Zcash Foundation on August 31, 2023, in connection with an inquiry regarding certain digital asset offerings. The foundation stated that the outcome reflects its commitment to transparency and compliance with applicable regulatory requirements. 

Zcash network launches five new DNS seeders

The SEC’s probe focused on regulations regarding anti-money laundering, economic sanctions, and securities. The announcement followed a 12% surge in the price of Zcash over 24 hours, which is currently trading at $437. On-chain data revealed that the digital asset has nearly doubled in the past three months, despite a decline in digital asset prices in October.

The conclusion of the SEC’s probe comes as the nonprofit organization announced an expansion to the Zcash Network Infrastructure on Tuesday. The foundation deployed five new DNS seeders in South Carolina, Oregon, Belgium, Germany, and Finland. Zcash Foundation currently has six ZF-operated seeders, with one in Iowa. 

The ZF-linked DNS aims to help new nodes establish their initial connections, enabling fast transactions on the network. The Zcash network previously relied on a flurry of DNS seeders operated by the Electric Coin Company (ECC), the Zcash Foundation (ZF), and Zcash Core developer Jack Grigg (str4d).

Zcash Foundation noted that the DNS operated by ECC stopped responding on January 8. The organization argued that ECC seeders had gone offline, resulting in slower-than-usual bootstrapping for new Zcash users. The hiccup reduced the number of available seeders, allowing additional infrastructure to ensure reliable peer discovery for users.

ZF acknowledged that multiple DNS seeders in different geographic locations will boost reliability. The firm believes it will ensure wallets and nodes can always find peers on the network, even during outages. The organization also noted that the initiative enhances performance by reducing startup times for wallets and nodes.

The Zcash Foundation stated that it’s considering additional deployments in other regions to further improve coverage and reliability. The organization also revealed that Shielded Labs is working to deploy additional seeders.

Zcash Foundation focuses on advancing privacy-preserving technology

After the resignations at Electric Coin Company, ZF maintained that it’s focused on advancing privacy-preserving financial infrastructure for the public good. The organization added that it’s making efforts to steward Zcash as a decentralized and open-source protocol.

ZF confirmed that no contributor, team, or organization controls Zcash, since its codebase is open-source. The organization revealed that Zcash’s consensus rules are enforced by independent node operators globally. Other organizations and contributors also support the development of the protocol.

Zcash Foundation stated that the structure ensures that changes within organizations do not compromise the integrity or continuity of the Zcash blockchain. The organization argued that the network continues to operate normally by continuing to produce blocks, settle transactions, and ensure users’ funds and privacy remain secure.

ZF revealed that it’s focused on maintaining and supporting the development of the Zcash protocol, as well as allocating funding for independent research and engineering. The foundation is also focused on supporting decentralization across governance and will also advocate for privacy in the protocol.

The organization stated that although transitioning within the ecosystem creates uncertainty, it’s important for users to distinguish between organizational shifts and the health of the network. ZF acknowledged that its network is independent of any single organization, board, or corporate entity. The firm stated that its network’s resilience and future depend on users, miners, researchers, developers, and organizations united by a shared commitment to privacy-preserving technology.

Zcash Foundation also maintained that it remains committed to transparency, continuity, and collaboration with all ecosystem participants. The organization has also promised to act in the best long-term interests of the Zcash network and community.

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