Zcash is working on two fronts at the same time. Its latest NU7 upgrade has gone live on the testnet, bringing 25-second blocks and a new fee system closer to reality. At the same time, a Zcash-focused advocacy group has officially registered to lobby US lawmakers on crypto rules, financial privacy, taxes and protections for software developers.
The NU7 upgrade went live at block 4,465,026 on October 4, while the group, Pretty Good Policy for Zcash (PGPZ), began its federal lobbying work on October 1.
NU7 activated on testnet. $ZEC https://t.co/Iwl4t51cSh
— Zcash 🛡️ (@Zcash) October 4, 2026
For Zcash users, the testnet upgrade is the more immediate development. NU7 is expected to reduce the target time between blocks from 75 seconds to just 25 seconds. In simple terms, transactions could receive their first confirmation much faster once the change reaches the main network.
Source: testnet.zecblock.com
The testnet activation happened earlier than developers had originally expected. The activation block was mined on October 4 at 18:21:45 UTC. Developers now have a few weeks to see how the changes perform before making a final decision about the mainnet.
That decision is expected on October 20. If everything goes well, Zcash still plans to activate NU7 on the mainnet on November 5. The date, however, has not been finalised yet.
The shorter block time is not the only change coming with NU7. The upgrade also introduces limits on shielded actions. These limits are meant to stop people from filling blocks with too many shielded transactions and putting extra pressure on wallets and the network.
Another major change is the Network Sustainability Mechanism, or NSM. Under this system, part of the transaction fees will be put into a reserve instead of being used immediately. That reserve can later be used for future block rewards.
There is also an important change for people who still have ZEC in the older Sprout shielded pool. NU7 will disable version 4 transactions on the mainnet, and spending funds from Sprout depends on those transactions. Anyone with ZEC there will therefore need to move it before the upgrade if they want to keep using those funds.
The upgrade comes only a few months after Zcash introduced its Ironwood upgrade in July. Ironwood was developed after a vulnerability was found in the Orchard shielded pool. Developers said they found no evidence that the flaw had actually been exploited, but they could not completely rule out the possibility of counterfeit ZEC having been created. While developers are working on the technology, another group is taking Zcash’s concerns to Washington.
Source: lda.gov
Pretty Good Policy for Zcash, or PGPZ, registered as a federal lobbying organisation on October 1. The group says it will focus on financial privacy, developer protection and Zcash ecosystem issues. It plans to engage with lawmakers and regulators on crypto legislation that could affect privacy-focused digital assets.
PGPZ has listed three bills as part of its lobbying agenda. They include the Digital Asset Market Clarity Act, the Digital Asset Tax Certainty Act and the Aligning Digital Assets with Principles of Taxation Act.
The group was created in June and grew out of Pretty Good Policy for Crypto, a policy initiative originally developed by Electric Coin Co. Its founder, Paul Brigner, has said the aim is to give Zcash a more organised voice in Washington.
PGPZ is independent of the Zcash Foundation and says it is not affiliated with or endorsed by the foundation. It also says it will not use its funding for political donations or activities aimed at increasing the price of ZEC.
The group has received a $750,000 grant from Zcash Community Grants to support its work for a year. Its plans include meetings with policymakers, educational material for congressional offices and policy briefings.
Its lobbying comes at a time when US lawmakers are still debating how crypto should be regulated. The market structure bill known as the CLARITY Act has faced delays in the Senate, while lawmakers are also looking at changes to crypto taxation.
For Zcash, therefore, the next few weeks will be important on both the technology and policy fronts. Developers will be watching how NU7 performs on testnet before deciding whether to take it to mainnet. At the same time, PGPZ will be trying to make sure that privacy and developer rights are part of the wider crypto policy discussion in Washington.
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