Zcash policy group asks SEC to protect wallet privacy in proposed crypto fundraising disclosure rules

27 Oct 2026

27 Oct 2026, 09:58 UTC+01:00

Regulation TradeReviewed News Desk

A Zcash policy group wants the SEC to let crypto issuers back up their fundraising disclosures without putting their entire on-chain financial history on display. According to CryptoSlate, Pretty Good Policy for Zcash (PGPZ) made the case in an Oct. 20 submission on the SEC’s proposed Regulation Crypto Assets.

What the SEC has proposed

The proposal, issued Aug. 18, would create a startup exemption for token offerings of up to $5 million over four years and a fundraising exemption for up to $75 million over 12 months. Issuers using these routes would skip full securities registration but still face disclosure duties and federal antifraud and antimanipulation rules.

Rule 103 sets out the narrative disclosures. Its paragraph (b)(7) covers token economics and allocations, including supply, pricing, lockups, related-person holdings and release schedules, plus methods to verify a token’s transaction history. As of Oct. 26, the SEC docket still lists the package as a proposed rule.

What PGPZ is asking for

PGPZ argues that evidence should match the claim investors need checked. Proving that a transaction followed a network’s rules does not show how an issuer spent investor money, so accounting records may still be needed. The group asks the SEC to state explicitly that issuers can use accounting records, cryptographic proofs and selective disclosure, and explain what each method verifies.

It also warns that handing over a viewing key can expose extensive financial activity even though the key cannot spend funds, and asks for clarity that complete public histories or viewing and spending keys are not required by default. PGPZ says material holdings, preferential terms and conflicts of interest must remain disclosed.

The filing gives a practical test to remarks SEC Chairman Paul Atkins made on Dec. 15, when he described zero-knowledge proofs and selective disclosure as ways to show compliance without surrendering a full financial history. Atkins said those views were his own.

What it means for traders

• Nothing changes yet. These are requests for the final rule text, not an adopted compliance route.
• Privacy coins have a seat at the table. How the SEC handles selective disclosure could shape how privacy-focused projects raise money in the US.
• Know where you can trade them. Privacy coin availability varies by exchange and region. Check our exchange comparison and reviews of BingX and OKX, our top two picks, plus how we test.

This article is for information only and is not financial advice.

Related reviews

• Bingx review
• Okx review

Sources

• CryptoSlate: Public wallet logs expose founder histories, and Zcash group demands fix

News is for information only and is not financial advice. More crypto news