Zcash (ZEC) is back on investors’ radar after US regulators ended a long-running investigation into the Zcash Foundation without enforcement. The decision removes a major source of uncertainty that has followed the privacy-focused cryptocurrency since 2023.
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The markets reacted quickly, with ZEC posting double-digit gains in some sessions and stabilizing above the $400 level. While regulatory clarity has helped improve sentiment, questions around long-term governance and development remain.
ZEC's price trends sideways after a violent move upwards on the daily chart. Source: ZECUSD on Tradingview
SEC closes two-year Zcash investigation
The U.S. Securities and Exchange Commission confirmed that it has completed its investigation into the Zcash Foundation, which began with a subpoena issued on August 31, 2023.
The investigation focused on potential securities law issues related to Zcash’s financing model, governance structure and token distribution. According to the foundation, the SEC does not intend to recommend enforcement actions, fines or operational changes.
This outcome marks a notable shift for privacy-focused cryptocurrencies, which have often faced heightened scrutiny from regulators over concerns about illegal use. The decision suggests that Zcash’s privacy features alone were not considered a sufficient cause of action under existing securities laws.
The closure also joins a broader trend that has seen the SEC withdraw from several high-profile crypto investigations in recent months under new leadership. For Zcash, the end of the investigation puts an end to regulations that have been weighing on investor confidence for almost two years.
Market reaction and price projections
After the announcement has ZEC rose between 5% and 14% on the major exchanges, briefly testing the $440-$450 resistance zone. Currently, the token is trading between $427 and $442, which is above the psychological support level of $400.
Technically, ZEC remains in a consolidation phase, having fallen from its January high near $535. Resistance is around $450-$470, while support is around $400, with a deeper bottom around $350 if sentiment weakens.
Some analysts point to a longer-term symmetrical triangle pattern, often seen as a continuation structure after strong rallies. A confirmed break above the upper trendline could open the door to higher levels, including a possible retest of the $1,000 mark later in 2026.
Governance uncertainty clouds the prospects
Despite the regulatory victory, internal challenges remain. The entire development team joined earlier this month Electric Coin Company (ECC)which led Zcash’s core development, has resigned following a dispute with the nonprofit’s board.
Former ECC leaders pointed to deteriorating working conditions and have since announced plans to launch a new privacy-focused wallet, cashZ, based on Zcash technology.
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The Zcash Foundation has stated that network operations and protocol stability remain unaffected by the personnel changes. Still, the departures have raised concerns about the stability of governance, continuity of development and long-term coordination within the ecosystem.
Cover image of ChatGPT, ZECUSD chart from Tradingview