SEC Closes Zcash Investigation Without Charges; ZEC Surges 10-14% as Privacy Coins Rally

Source: CoinEdition Original Title: SEC Ends Zcash Probe Without Action, ZEC Price Jumps Original Link:

Key Highlights

• SEC closes Zcash Foundation investigation with no charges, fines, or required changes.
• ZEC jumps 10-14% as traders price in reduced regulatory risk.
• Analysts flag $450 as a key resistance level for Zcash’s next move.

SEC Decision Brings Relief to Privacy Sector

The U.S. Securities and Exchange Commission has closed its investigation into the Zcash Foundation without taking any enforcement action, bringing relief to the privacy-focused crypto sector after more than two years of uncertainty.

The probe began in August 2023, when the Zcash Foundation received a subpoena as part of a wider SEC inquiry into certain crypto asset offerings. On Thursday, the foundation said the regulator has now completed its review and confirmed it does not plan to pursue charges, fines, or require any changes.

“This outcome reflects our commitment to transparency and regulatory compliance,” the Zcash Foundation said, adding that it will continue focusing on building privacy-preserving financial infrastructure.

Market Reacts Quickly

Following the announcement, Zcash’s token, ZEC, jumped between 10% and 14%, as traders priced in lower regulatory risk. At the time of writing, ZEC is trading at $432.

One analyst said Zcash (ZEC) is pushing back toward the $450 resistance level, supported by a rising trendline and improving momentum indicators.

However, the analyst warned that the price is currently stuck in a choppy middle zone, making it risky for new trades. According to the analyst, long positions only make sense if ZEC breaks clearly above $450 with strong follow-through.

Other privacy-focused tokens also stayed in focus. Monero and Dash, which had rallied sharply earlier in the week, saw some consolidation but remained among the top performers.

Why This Matters for Privacy Coins

Analysts say the SEC’s decision could be an important signal for the privacy coin space. While it does not create a blanket approval, it suggests that privacy-focused protocols operating within compliance boundaries may face less regulatory pressure than previously feared.

Privacy coins have been one of the strongest-performing crypto narratives recently, even during periods of broader market weakness. Over the past year, privacy-focused cryptocurrencies with market capitalizations above $500 million have consistently outperformed the wider market.

Tokens such as ZEC, XMR, and DASH have outperformed Bitcoin and Ethereum over certain periods, pointing to a rotation toward niche themes.