Zcash Jumps 10% After SEC Closes Investigation, Q1 Report Shows $36.7M Treasury
Zcash (ZEC) rallied nearly 10% on Tuesday, approaching $580, after the US Securities and Exchange Commission (SEC) closed its investigation into the Zcash Foundation without penalties. The probe, initiated in August 2023 under case SF-04569, concluded in January 2026, removing a regulatory overhang that had weighed on the privacy token for over two years. The Foundation confirmed full cooperation and no enforcement actions. This aligns with a broader SEC retreat from crypto cases since 2025, with similar closings for Aave, OpenSea, and others. Concurrently, the Foundation's Q1 2026 report disclosed $36.7 million in liquid holdings, with ZEC comprising 58.6% of the balance, alongside Bitcoin, USD reserves, and a small Ether position. Monthly operating expenses average $272,500, providing a multi-year runway. The disclosure comes amid staff departures from Electric Coin Company due to governance disputes, yet network operations remain stable. Engineering progress includes Zebra node releases, Z3 stack advances, FROST multi-party signing, and NU7 upgrade work. Grayscale also endorsed Zcash as a preferred privacy asset, attracting institutional interest. Traders now monitor NU7 timing and Foundation spending discipline, while betting on sustained SEC leniency.
Key facts
- SEC closed Zcash Foundation investigation without penalties, removing two-year regulatory overhang.
- ZEC price jumped nearly 10% to $580 on the news.
- Q1 2026 report shows $36.7 million treasury with 58.6% in ZEC.
- Foundation maintains multi-year runway with $272,500 monthly expenses.
- Grayscale endorsed Zcash, attracting institutional interest.