SEC Drops Charges Against Nova Labs: A Victory for Helium Network
The U.S. Securities and Exchange Commission (SEC) has recently decided to dismiss its case against Nova Labs, the entity behind the Helium Network. The SEC ruled that the project’s tokens do not qualify as securities, resulting in a positive shift for Helium’s cryptocurrency, HNT, which is currently trading at approximately $2.92, marking a 7% increase over the last 24 hours.
Nova Labs Settles with $200,000 Penalty
Despite achieving a significant regulatory win, Nova Labs consented to pay a $200,000 civil penalty to resolve fraud allegations, without admitting any wrongdoing. The SEC had previously accused the company of misleading institutional investors during a 2021-2022 fundraising round, where Nova Labs raised $200 million with a company valuation of $1 billion. Allegations included overstating affiliations with large corporations like Nestle and Salesforce, which were sparse and largely occurred before Helium’s network launched in 2019. The financial settlement was notably absent from the company’s announcement about the SEC’s dismissal.
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Impactful Decision Sets a Precedent for DePIN Initiatives
In a blog post dated April 10, Helium confirmed, “All compatible Helium Hotspots and the distribution of HNT, IOT, and MOBILE tokens on the Helium Network are not securities.” This announcement underlines the fact that selling hardware and distributing tokens to facilitate network growth does not automatically classify them as securities. This landmark decision establishes a crucial precedent for Decentralized Physical Infrastructure Networks (DePIN), alleviating legal uncertainties for similar projects utilizing cryptocurrency incentives to build physical infrastructure. The ruling indicates a transformative shift in regulatory perspectives.
Resilience of Helium Network Despite Previous Challenges
The Helium Network boasts around 375,000 active hotspots worldwide, offering a blockchain platform that enables users to establish and manage WiFi networks, delivering distributed wireless infrastructure for mobile and Internet of Things (IoT) devices.
Regulatory Changes Under Trump Administration
The resolution of the Helium case is part of a broader pattern of SEC case dismissals under the Trump administration. The SEC has reportedly dropped charges against several leading cryptocurrency firms, including Coinbase, Binance, and Uniswap, since President Donald Trump assumed office in January. The conclusion of these cases aligns with Paul Atkins replacing Gary Gensler as the chairman of the Securities and Exchange Commission, following U.S. Senate confirmation. The action against Nova Labs was initially filed in January 2025 and was among the final enforcement actions initiated under Gensler’s leadership before his resignation. Reports indicate that Acting Chairman Mark Uyeda and Commissioner Hester Peirce advocated for the dismissal of crypto enforcement cases during the transition from Gensler to Atkins. Despite his crypto-friendly reputation, Atkins has expressed an intention to focus on establishing a regulatory framework for digital assets.
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