- SEC ended the review for Zcash Foundation, declined enforcement following a subpoena SF-04569 on August 31.
- The price of Zcash went up by about 12% in a day and is trading close to $437.
- It also added five new seeders to its network of domain name system seeders, increasing the ZF-operated total to six.
The U.S. Securities and Exchange Commission has concluded its review of the Zcash Foundation, informing the public charity that it does not intend to pursue enforcement actions or additional charges. The decision closes a regulatory inquiry tied to certain digital asset offerings and marks a development for the privacy-focused blockchain ecosystem.
The Zcash Foundation revealed receiving a subpoena from the SEC on August 31, 2023, related to a probe into certain crypto asset offerings with case number SF-04569. As per a post by Wu Blockchain, the foundation stated that the review process emphasized transparency, cooperation, and adherence to applicable regulatory standards during the extended examination period.
Zcash Rallies After SEC Inquiry Closure
However, the investigation by the SEC was in relation to compliance with the law regarding securities, anti-money laundering statutes, and economic sanctions. After the verification of the result of the investigation, the price of Zcash appreciated by about 12% in 24 hours while it was trading around $437, despite the fact that the digital asset market was weak. The asset had almost doubled in value over a period of three months.
The regulatory update coincided with the Zcash Foundation’s announcement of expanded network infrastructure. The Zcash Foundation has rolled out five new seeders on the network, which are located in the South Carolina region, the state of Oregon, the country of Belgium, Germany, and Finland, making the total number of seeders operated by the ZF six, including global node connectivity reliability.
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Network Resilience and Governance Structure
According to the foundation, DNS seeders help new nodes in making the first peer connections. The unresponsiveness of DNS services offered by Electric Coin Company on January 8 resulted in slower bootstrapping due to less availability of seeders; this forced ZF to improve infrastructure availability in different regions around the world.
The Zcash Foundation reaffirmed its commitment to privacy-preserving tech, decentralization, and open-source governance models. It clarified that there isn’t any centralized organization that controls the network, with consensus achieved through independent nodes distributed globally. According to the ZF, development, research, and collaboration ensure that there is continuity and security for digital asset users.
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