SEC Clears Zcash Foundation as ZEC Rallies on Regulatory Relief
The SEC concluded its review of the Zcash Foundation without recommending enforcement action, causing ZEC to rally amid recent governance turmoil.Summary
The U.S. Securities and Exchange Commission (SEC) informed the Zcash Foundation that it will not recommend any enforcement action regarding a two-year investigation into Zcash-related offerings. This decision removed a significant regulatory overhang, causing the ZEC token price to surge by about 13% to near $440 on heavy volume.
This positive regulatory news followed a period of intense internal governance turmoil within the Zcash ecosystem. The entire core development team at Electric Coin Company (ECC) resigned after a public dispute with the Bootstrap Foundation over governance and employment changes, which had previously caused ZEC to drop sharply.
Despite the ECC team's departure and restructuring into a startup to scale the network, stakeholders confirmed that the blockchain remains decentralized and operational. The combination of regulatory relief and ongoing efforts to scale the protocol shifted market sentiment positively.
(Source：BeInCrypto)