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Zcash Hires New Washington Lobbyist to Push CLARITY Act and Crypto Tax Rules

Zcash Hires New Washington Lobbyist to Push CLARITY Act and Crypto Tax Rules

Zcash has engaged a newly registered Washington lobbyist to press its case on crypto policy, according to a disclosure filing. The lobbying operation will target the CLARITY Act, the market-structure bill that has become the central piece of digital asset legislation in Congress, along with two separate digital asset tax proposals.

The registration is the clearest signal yet that Zcash — a privacy coin that has spent years on the defensive in Washington — intends to fight for its place in whatever regulatory framework emerges from the CLARITY Act and the tax debates. It also puts the project in the same queue as the exchanges, stablecoin issuers, and trade groups that have been circling Capitol Hill for months.

Why Zcash is spending money now

Privacy coins have had a rough run in Washington. Regulators and law enforcement have repeatedly flagged anonymous transactions as a money-laundering risk, and several exchanges have delisted privacy-focused assets under pressure. Zcash's decision to hire a lobbyist suggests the project has concluded that staying on the sidelines is no longer viable.

The CLARITY Act is the immediate prize. The bill aims to draw a line between which digital assets are securities and which are commodities, a distinction that matters enormously for a token whose legal status has never been settled. If Zcash can shape how the law treats privacy features, it avoids a scenario where compliance obligations are written in a way that effectively outlaws its core function.

The tax proposals are the second front. Digital asset tax rules remain a patchwork in the US, and the two proposals now on the table could change how privacy-preserving transactions are reported. For a project built around shielded transfers, reporting requirements are not a paperwork issue — they go to the heart of the product.

A new registration, not an old relationship

The filing lists the lobbyist as newly registered, meaning this is a fresh engagement rather than an extension of prior work. That matters because it suggests Zcash is building its advocacy operation from scratch at a moment when the policy window is narrowing. Congress has been moving on crypto legislation with more urgency than in previous sessions, and the tax proposals have their own timeline.

Zcash is not the only project trying to get a seat at the table. The past year has seen a steady stream of crypto companies and foundations register lobbyists as the CLARITY Act picked up momentum. What's different here is the category. Most of that lobbying has come from trading platforms and stablecoin issuers, not privacy coins, which have historically chosen a lower profile.

What the disclosure does and doesn't say

The registration confirms the subjects — the CLARITY Act and two tax proposals — but it doesn't detail specific asks or which offices the lobbyist plans to visit. Lobbying disclosures rarely do. What's clear is that Zcash has decided the cost of staying quiet is higher than the cost of showing up.

The next concrete step is the lobbyist's first filings, which will show which congressional offices and agencies were contacted and on what specific provisions. Those filings are typically due on a quarterly basis, so the first window into the actual strategy should come in the next reporting period.

Until then, the open question is whether a privacy coin can win any meaningful accommodation in a bill designed with transparency in mind. Zcash has hired someone to make that argument. Whether anyone on Capitol Hill is ready to hear it is a different matter.