SEC Dismisses Lawsuit Against Nova Labs, Impacting Helium Network
In a pivotal moment for the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) has officially closed its case against Nova Labs, the company behind the Helium Network, confirming that the tokens associated with the project do not qualify as securities. This regulatory victory comes at a time when Helium (HNT) is experiencing a surge in market activity, currently valued at around $2.89—an increase of over 6% within the last day.
Helium (HNT) Rises as SEC Withdraws Legal Action
The lawsuit, which was initiated in January 2025, represented one of the final enforcement measures executed by the SEC under the leadership of former Chair Gary Gensler, who stepped down following the inauguration of President Donald Trump. The dismissal of the lawsuit, which pertains to the HNT, IOT, and MOBILE tokens, means that Nova Labs is shielded from facing similar allegations regarding securities violations in the future. “We can now clearly state that all compatible Helium Hotspots and the issuance of HNT, IOT, and MOBILE tokens via the Helium Network are not classified as securities,” the company stated in a blog post dated April 10. “This decision indicates that, according to the SEC, the sale of hardware and the distribution of tokens aimed at network expansion does not inherently classify them as securities.”
Significant Precedent for Decentralized Infrastructure Projects
This ruling sets an important precedent for Decentralized Physical Infrastructure Networks (DePIN), alleviating legal uncertainties surrounding similar initiatives that utilize crypto incentives to develop tangible infrastructure.
Nova Labs Agrees to $200,000 Settlement Over Investor Misrepresentation
Court documents reveal that Nova Labs has consented to pay a civil fine of $200,000 to resolve fraud allegations, although the company neither admitted nor denied any wrongdoing. This settlement comes as Nova Labs celebrates the legal victory regarding the classification of its tokens. The SEC previously accused the company of misrepresenting its engagement with Helium technology during a fundraising effort that amassed $200 million at a $1 billion valuation in 2021-2022. The allegations suggest that Nova Labs overstated its relationships with major corporations like Nestle, Salesforce, and Lime, indicating that actual interactions were limited and primarily occurred prior to the network’s launch in 2019. Notably, the company’s announcement about the SEC lawsuit dismissal did not mention this financial settlement.
Helium Network’s Expansion Amidst Legal Hurdles
Helium operates a blockchain network that enables individuals to establish and manage WiFi networks, boasting approximately 375,000 active hotspots globally. This initiative aims to develop a decentralized wireless infrastructure to support mobile connectivity and Internet of Things (IoT) devices. Despite facing legal challenges, Helium maintains a robust market presence, with a valuation of around $480 million as of April 10. While this represents a significant decline from its peak of over $5 billion in November 2021, the lifting of regulatory ambiguity may pave the way for future growth.
Broader Regulatory Changes Under Trump Administration
The resolution of the Helium case under leadership appointed by Trump marks a significant shift in SEC policy, as the agency has recently withdrawn enforcement actions against several prominent cryptocurrency firms, including Coinbase, Binance, OpenSea, Kraken, Consensys, and Uniswap. The timing of this dismissal is particularly notable, coinciding with Paul Atkins’ formal confirmation as the new SEC Chair, who was nominated by Trump. Although Atkins is regarded as supportive of the cryptocurrency sector, he has indicated that establishing a legal framework for digital assets will be a top priority. During the interim phase between Gensler’s resignation and Atkins’ confirmation, Acting Chair Mark Uyeda and Commissioner Hester Peirce actively sought to dismiss crypto enforcement cases, releasing statements that exempted various digital asset categories from being classified as securities.
