Crypto Relief: SEC Abandons Case Against Nova Labs—Details

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 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 court filings. The SEC had alleged the company had misled institutional investors in a fundraising round in 2021 and 2022, when it raised $200 million at a valuation of $1 billion.

According to the SEC, Nova Labs exaggerated connections to big companies like Nestle and Salesforce. These were few in number and mostly occurred prior to Helium’s network going live 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 said in an April 10 blog post. The company highlighted that the sale of hardware and token distribution for network expansion doesn’t necessarily qualify them as securities.

This decision sets a significant precedent for Decentralized Physical Infrastructure Networks (DePIN), eradicating legal uncertainty for projects of the same kind that make use of cryptocurrency incentives to create physical infrastructure. The ruling signals a fundamental shift in regulatory philosophy.

The Helium Network has around 375,000 active hotspots globally. The blockchain network enables users to create and operate WiFi networks offering distributed wireless infrastructure for mobile and Internet of Things (IoT) devices.

The dismissal of the Helium case adds to what seems to be a string of SEC case dismissals during the Trump administration. The agency has allegedly dropped charges against a number of prominent cryptocurrency businesses such as Coinbase, Binance, and Uniswap since US President Donald Trump was sworn into office in January.

The termination timing coincides with Paul Atkins formally taking the place of Gary Gensler as chairman of the Securities and Exchange Commission following confirmation by the US Senate.

The enforcement action against Nova Labs was first filed in January 2025 and was one of the last enforcement actions started by the SEC under the now-former chairman Gensler before he resigned.

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

While regarded as crypto-friendly, Atkins has said he intends to focus on creating a legal framework for digital assets.

Featured image from How To Justice, chart from TradingView