The U.S. Securities and Exchange Commission (SEC) has concluded its review of the Zcash Foundation. The agency informed the public charity that it does not intend to take any enforcement action or other charges against the Zcash Foundation regarding its crypto offerings.
The SEC had subpoenaed the 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 Enhances Infrastructure with New DNS Seeders
The SEC’s probe focused on regulations concerning anti-money laundering, economic sanctions, and securities. This announcement coincided with a notable surge in the price of Zcash, which saw a 12% increase over 24 hours, trading at $437. On-chain data indicated that the digital asset had nearly doubled in value over the past three months, despite a general decline in digital asset prices during October.
The conclusion of the SEC’s probe comes as the nonprofit organization announced an expansion to the Zcash Network Infrastructure. The foundation deployed five new DNS seeders in South Carolina, Oregon, Belgium, Germany, and Finland. The Zcash Foundation currently operates six ZF-operated seeders, with one located in Iowa.
The ZF-linked DNS aims to assist new nodes in establishing their initial connections, thereby enabling faster transactions on the network. Previously, the Zcash network relied on a number of DNS seeders operated by the Electric Coin Company (ECC), the Zcash Foundation (ZF), and Zcash Core developer Jack Grigg (str4d).
The Zcash Foundation noted that the DNS operated by ECC stopped responding on January 8. The organization highlighted that ECC seeders had gone offline, leading to slower-than-usual bootstrapping for new Zcash users. This disruption reduced the number of available seeders, necessitating additional infrastructure to ensure reliable peer discovery for users.
ZF acknowledged that having multiple DNS seeders in different geographic locations will significantly boost reliability. The firm believes this will ensure that wallets and nodes can consistently find peers on the network, even during outages. The organization also pointed out that this initiative enhances performance by reducing startup times for wallets and nodes.
The Zcash Foundation stated that it is considering additional deployments in other regions to further improve coverage and reliability. The organization also revealed that Shielded Labs is actively working to deploy additional seeders.
We are pleased to announce that the SEC has concluded its review and informed us that it does not intend to recommend any enforcement action or other changes against Zcash Foundation regarding this matter. https://t.co/zjxfh3mmst
— Zcash Foundation 🛡️ (@ZcashFoundation) January 14, 2026
Zcash Foundation Prioritizes Privacy-Preserving Technology Advancement
Following resignations at the Electric Coin Company, the ZF maintained that it is focused on advancing privacy-preserving financial infrastructure for the public good. The organization added that it is making efforts to steward Zcash as a decentralized and open-source protocol.
ZF confirmed that no single contributor, team, or organization controls Zcash, as 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.
The Zcash Foundation stated that this 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 producing blocks, settling transactions, and ensuring users’ funds and privacy remain secure.
ZF revealed that it is 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 committed to supporting decentralization across governance and will advocate for privacy within the protocol.
The organization stated that while transitions within the ecosystem can create uncertainty, it is important for users to distinguish between organizational shifts and the overall health of the network. ZF acknowledged that its network is independent of any single organization, board, or corporate entity. The firm emphasized that the network’s resilience and future depend on users, miners, researchers, developers, and organizations united by a shared commitment to privacy-preserving technology.
The Zcash Foundation also affirmed its commitment to transparency, continuity, and collaboration with all ecosystem participants. The organization has also pledged to act in the best long-term interests of the Zcash network and community.