The US Securities and Exchange Commission (SEC) has dismissed its case against Nova Labs, the company behind the Helium Network, declaring that the project’s tokens are not classified as securities. This decision comes at a time when Helium’s cryptocurrency, HNT, is experiencing a significant market upturn, trading at approximately $2.92, which reflects a remarkable 7% increase over the last 24 hours.
In conjunction with this regulatory achievement, Nova Labs has reached a settlement by agreeing to pay a civil penalty of $200,000 to resolve fraud allegations. Notably, they did so without admitting any wrongdoing. The SEC had accused Nova Labs of misleading institutional investors during its fundraising efforts in 2021 and 2022, when the company successfully raised $200 million at a valuation of $1 billion.
According to the SEC, the company overstated its affiliations with major corporations such as **Nestle** and **Salesforce**, asserting that these partnerships were minimal and primarily existed prior to the launch of the Helium network in 2019. Interestingly, the announcement regarding the SEC’s dismissal did not address this financial settlement.
Helium’s statement on April 10, 2025, proclaimed:
Today marks a significant victory for Helium and The People’s Network! The SEC has agreed to dismiss its unregistered securities claims with prejudice.
This pivotal decision establishes a crucial precedent for Decentralized Physical Infrastructure Networks (DePIN), as it eliminates legal uncertainties for innovations that utilize cryptocurrency incentives to build physical infrastructure. As highlighted by Helium, the distribution of HNT, IOT, and MOBILE tokens through the network does not inherently render them as securities.
Currently, the Helium Network boasts around 375,000 active hotspots globally, enabling users to create and maintain WiFi networks that support mobile and Internet of Things (IoT) devices. This network’s capability is instrumental in providing distributed wireless infrastructure.
The dismissal of the case against Nova Labs adds to a growing list of SEC case terminations observed during the current administration. Since the beginning of 2025, the agency has reportedly dropped charges against other notable cryptocurrency entities like **Coinbase**, **Binance**, and **Uniswap**. The timing of these dismissals appears to align with the recent shift in leadership as Paul Atkins replaces Gary Gensler as chairman of the SEC.
Following the SEC’s action filed against Nova Labs in January 2025, it represents one of the last enforcement actions initiated under Gensler’s oversight before his departure. Reports suggest that transitions in leadership within the SEC, particularly under the influence of Acting Chairman Mark Uyeda and Commissioner Hester Peirce, have led to dismissals of several crypto enforcement cases as they shift towards a more accommodating regulatory stance.
Atkins, perceived as crypto-friendly, has expressed an intention to prioritize the establishment of a comprehensive legal framework for digital assets. This shift indicates potential for future growth and stability in the cryptocurrency sector.
