SEC Dismisses Case Against Nova Labs, the Firm That Owns the Helium Network

The US Securities and Exchange Commission (SEC) has dismissed its case against Nova Labs, the firm that owns the Helium Network, deeming that the project's tokens are not securities.

The US Securities and Exchange Commission (SEC) has dismissed its case against Nova Labs, the firm that owns the Helium Network, deeming that the project’s tokens are not securities. This move comes when Helium’s cryptocurrency (HNT) enjoys robust market performance, trading at around $2.92 with a 7% rise over the past 24 hours.

Nova Labs Pays $200,000 Fine

Nova Labs agreed to pay a $200,000 civil penalty to settle fraud claims without admitting fault, despite celebrating the regulatory victory, according to documents filed in a federal court in San Francisco on Wednesday.

The SEC had alleged that the company made false and misleading statements to institutional investors in connection with a preferred equity offering in 2021 and 2022, when it raised $200 million at a $1 billion valuation.

According to the SEC, Nova Labs exaggerated the connections and partnerships it had with large companies such as Nestle and Salesforce. These partnerships were limited in number and mainly occurred before the launch of Helium’s network in 2019. This company announcement about the SEC’s dismissal did not mention this financial settlement.

Today marks a major win for Helium and The People’s Network! The SEC has agreed to dismiss its unregistered securities claims with prejudice. Helium Hotspots and the distribution of HNT, MOBILE, and IOT through the Helium Network are not securities. It also means that the SEC… pic.twitter.com/vJSBAFht8T

— Helium🎈 (@helium) April 10, 2025

Landmark Decision Creates Precedent For DePIN Projects

“We can now definitely say that all compatible Helium Hotspots and the distribution of HNT, IOT, and MOBILE tokens on the Helium Network are not securities,” Helium stated in an April 10 blog post. The company explained that the sale of hardware and token distribution for network expansion do not necessarily qualify them as securities.

This decision sets a significant precedent for Decentralized Physical Infrastructure Networks (DePIN), eliminating legal uncertainty for projects of the same type that utilize cryptocurrency incentives to build physical infrastructure. The ruling signals a fundamental shift in regulatory thinking.

Helium Network Remains In Strong Standing Despite Setbacks

The Helium Network currently has around 375,000 active hotspots operating in various locations worldwide. The blockchain network empowers users to create and manage small WiFi networks, offering decentralized wireless infrastructure for mobile and Internet of Things (IoT) devices.

Trump Administration Signals Shift In Crypto Regulation

The dismissal of the Helium case adds to what appears to be a string of SEC case dismissals during the Trump administration. The agency is said to have dropped charges against several prominent cryptocurrency businesses such as Coinbase, Binance, and Uniswap since US President Donald Trump was inaugurated in January.

The termination timing coincides with Paul Atkins formally assuming the role of chairman of the Securities and Exchange Commission following confirmation by the US Senate.

This development follows a tumultuous period that saw the departure of former chairman Gary Gensler, leaving behind a single commissioner, reportedly leading to the termination of several high-profile cases.

The enforcement action against Nova Labs was initially filed in January 2025 and represents one of the last enforcement actions initiated by the SEC under the now-former chairman Gensler before his resignation.

According to reports, Acting Chairman Mark Uyeda and Commissioner Hester Peirce endeavored to dismiss crypto enforcement cases amid the transition from Gensler’s exit to Atkins’ confirmation.

While viewed as crypto-friendly, it seems that chair Paul is more interested in setting up a legal framework for digital assets than in continuing to dismantle the existing regulatory regime.