- The SEC has dismissed its lawsuit against Nova Labs, ruling that Helium Network’s tokens and hotspot devices are not securities.
- The decision creates a precedent for similar decentralized physical infrastructure networks and marks a reversal in the SEC’s regulatory approach.
- Nova Labs agreed to a $200,000 “no admit/no deny” settlement related only to its Series D equity financing, significantly less than previous crypto enforcement actions.
The Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Nova Labs, the company behind the Helium Network, determining that the project’s tokens and hotspot devices connected to its blockchain are not securities. The dismissal occurred as the agency transitions leadership from Gary Gensler to incoming chair Paul Atkins, who was confirmed by the Senate on Wednesday with a 52-44 vote along party lines.
Helium described the SEC’s decision as establishing that "selling hardware and distributing tokens for network growth does not automatically make them securities," according to a statement released Thursday. The regulatory ruling potentially removes legal uncertainty surrounding how similar decentralized physical infrastructure networks are evaluated.
Lawsuit Origins and Resolution
The original lawsuit was filed against Helium on January 17, alleging Nova Labs violated securities laws through unregistered offerings and misleading investors about partnerships with companies including Nestlé and Salesforce. At the time, Helium co-founder and Nova Labs CEO Amir Haleem characterized the SEC’s action as "the last gasp of a failed crusade against crypto companies in the U.S."
As part of the resolution, Nova Labs agreed to a modest $200,000 "no admit/no deny" settlement related to its Series D equity financing—substantially lower than penalties imposed in previous crypto enforcement actions. Despite the favorable legal outcome, the network’s native token, Helium (HNT), remained relatively unchanged at $2.76, according to CoinGecko data.
Broader Shift in Crypto Regulation
The case’s resolution joins a wave of SEC reversals under the new Trump-appointed leadership, including previously filed actions against Binance, Coinbase, and OpenSea. During the interim period following Gensler’s departure, Acting Chair Mark Uyeda and Commissioner Hester Peirce moved to dismiss nearly all major crypto enforcement actions.
The regulators have also issued statements exempting meme coins, crypto mining, and stablecoins from securities regulation, signaling a significant shift in the agency’s approach to cryptocurrency oversight. The Helium case was reportedly among Gensler’s final enforcement actions before leaving office, highlighting the changing regulatory environment for blockchain and cryptocurrency projects in the United States.
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