In a regulatory pivot that could reverberate across the decentralized infrastructure space, the U.S. Securities and Exchange Commission (SEC) has formally dropped its lawsuit against Nova Labs, the team behind the Helium Network. The move effectively signals that Helium’s hardware sales and token distribution model will not be treated as securities issuance.
The decision, made public Thursday, affirms that providing blockchain-connected hotspot devices and distributing tokens to incentivize network growth does not inherently constitute a securities transaction. Helium called the outcome a “landmark moment” for decentralized physical infrastructure networks (DePIN), arguing that the case sets a critical precedent for how such projects may be evaluated under federal securities law.
The timing of the dismissal also underscores a broader shift within the SEC. The agency is now under the leadership of Paul Atkins, confirmed as SEC Chair by a 52–44 Senate vote Wednesday evening. Atkins is expected to take a more favorable stance toward crypto compared to his predecessor, Gary Gensler, whose tenure was marked by aggressive enforcement actions targeting tokens, DeFi protocols, and digital asset firms.
For now, Helium’s tokens—HNT, IOT, and MOBILE—appear to be in the clear. With the SEC’s posture softening under new leadership, industry observers anticipate fewer sweeping legal crackdowns and more guidance-driven regulation for DePIN and related sectors.
Helium’s Legal Battle Ends with Modest Settlement
The lawsuit, filed on January 17, alleged that Nova Labs conducted unregistered securities offerings through its Helium (HNT) token and misrepresented partnerships with companies like Nestlé and Salesforce. The SEC has now dismissed the case with prejudice, meaning it cannot be refiled.
The case marked one of the final enforcement actions under former SEC Chair Gary Gensler. At the time, Helium co-founder and Nova Labs CEO Amir Haleem criticized the charges, calling them “the last gasp of a failed crusade against crypto companies in the U.S.”
The settlement included a $200,000 “no admit/no deny” agreement, related solely to Nova Labs’ Series D equity raise—a significantly smaller penalty compared to previous high-profile crypto settlements.
Dismissal Reflects SEC Retreat Under New Leadership
The resolution of the Helium case adds to a growing list of enforcement rollbacks under the SEC’s new leadership. Since Gensler’s departure in January, the agency—now guided by Chair Paul Atkins, Acting Chair Mark Uyeda, and Commissioner Hester Peirce—has begun unwinding several lawsuits initiated during the previous administration.
Alongside the Helium dismissal, legal actions and probes against major industry players like Binance, Coinbase, and OpenSea have also been shelved. The SEC has further softened its stance by deprioritizing enforcement around categories such as meme coins, stablecoins, and crypto mining operations.
The shift signals an evolving regulatory environment that favors clarity and innovation over litigation—especially in sectors like DePIN, where traditional securities frameworks are often a poor fit.
Quick Facts
- The SEC has dismissed its lawsuit against Nova Labs, the developer of the Helium network.
- Nova Labs agreed to a $200,000 settlement without admitting or denying the SEC’s allegations.
- The decision reflects a broader shift in the SEC’s regulatory posture under Chair Paul Atkins.
- The outcome affirms the current regulatory status of Helium’s tokens and sets a key precedent for DePIN projects.
