SEC Drops Lawsuit Against Helium Developer Nova Labs Over Token Sale
- The SEC dismissed its lawsuit against Nova Labs with prejudice on April 10.
- Nova Labs will pay a $200,000 civil penalty over past fundraising claims.
The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Nova Labs, the developer behind the Helium Network. The case, filed in January 2025, alleged that Nova Labs sold unregistered securities through its 2019 issuance of the Helium (HNT) token.
In an April 10 blog post, Helium confirmed that the lawsuit had been dismissed with prejudice. This legal outcome means the SEC cannot refile similar charges related to the same conduct. The company stated that the decision ends years of uncertainty around its token model and network structure.
The dismissal occurred on the same day Paul Atkins, a Trump-nominated regulator, formally took over as SEC Chair. His appointment followed the resignation of former Chair Gary Gensler on January 20.
Trump-Era SEC Sets New Tone for Crypto
Helium said the ruling clarified that distributing tokens like HNT, IOT, and MOBILE to grow decentralized infrastructure does not make them securities. The company said this sets a key precedent for the broader Decentralized Physical Infrastructure Network (DePIN) sector.
Court documents revealed that Nova Labs agreed to pay a $200,000 civil penalty. The charge related to a separate allegation that the company misled investors during a 2021–2022 fundraising round. The SEC said Nova Labs exaggerated ties with brands like Lime, Nestle, and Salesforce. The firm settled the matter without admitting or denying the claims.
Under President Donald Trump, the agency has dropped actions against Coinbase, Kraken, Ripple, and Consensys. The administration’s pro-crypto stance includes plans for a national Bitcoin reserve and deregulation efforts led by Elon Musk’s Department of Government Efficiency (DOGE).
On April 5, SEC Commissioner Mark Uyeda announced a review of seven past crypto-related policy statements. These include the 2019 FinHub framework used to evaluate token offerings under the Howey Test. Helium currently reports about 375,000 active hotspots.
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SEC Drops Lawsuit Against Helium Developer Nova Labs Over Token Sale
- The SEC dismissed its lawsuit against Nova Labs with prejudice on April 10.
- Nova Labs will pay a $200,000 civil penalty over past fundraising claims.
The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Nova Labs, the developer behind the Helium Network. The case, filed in January 2025, alleged that Nova Labs sold unregistered securities through its 2019 issuance of the Helium (HNT) token.
In an April 10 blog post, Helium confirmed that the lawsuit had been dismissed with prejudice. This legal outcome means the SEC cannot refile similar charges related to the same conduct. The company stated that the decision ends years of uncertainty around its token model and network structure.
The dismissal occurred on the same day Paul Atkins, a Trump-nominated regulator, formally took over as SEC Chair. His appointment followed the resignation of former Chair Gary Gensler on January 20.
Trump-Era SEC Sets New Tone for Crypto
Helium said the ruling clarified that distributing tokens like HNT, IOT, and MOBILE to grow decentralized infrastructure does not make them securities. The company said this sets a key precedent for the broader Decentralized Physical Infrastructure Network (DePIN) sector.
Court documents revealed that Nova Labs agreed to pay a $200,000 civil penalty. The charge related to a separate allegation that the company misled investors during a 2021–2022 fundraising round. The SEC said Nova Labs exaggerated ties with brands like Lime, Nestle, and Salesforce. The firm settled the matter without admitting or denying the claims.
Under President Donald Trump, the agency has dropped actions against Coinbase, Kraken, Ripple, and Consensys. The administration’s pro-crypto stance includes plans for a national Bitcoin reserve and deregulation efforts led by Elon Musk’s Department of Government Efficiency (DOGE).
On April 5, SEC Commissioner Mark Uyeda announced a review of seven past crypto-related policy statements. These include the 2019 FinHub framework used to evaluate token offerings under the Howey Test. Helium currently reports about 375,000 active hotspots.
Highlighted Crypto News Today
North Carolina’s New Bill Proposes a New Crypto Bill for State Taxes
Read More