Helium Scores Legal Victory as SEC Dismisses Lawsuit
The case was originally filed in January of 2025, and it accused Nova Labs of issuing unregistered securities through its HNT token. Now, its dismissal with prejudice confirms the SEC cannot revisit the charges. Meanwhile, the SEC recently issued new guidance to provide some more clarity on crypto disclosures, but it stopped short of defining what constitutes a security. While the lawsuits against other crypto companies were dropped, Jack Dorsey’s Block Inc. settled with New York regulators for $40 million over Cash App compliance failures.
SEC Ends Legal Battle With Helium
The US Securities and Exchange Commission (SEC) officially dropped its lawsuit against Nova Labs, the company behind the decentralized wireless network Helium. This is according to a blog post that was published by Helium on April 10.
The suit was originally filed in January of 2025, and it alleged that Nova Labs issued unregistered securities when it launched its native token, Helium (HNT), in 2019. However, the SEC’s dismissal of the case “with prejudice” means the agency cannot pursue similar charges against the company again.
This was one of the last enforcement actions that was initiated under former SEC Chair Gary Gensler, who resigned after the inauguration of President Donald Trump on Jan. 20. The agency's decision to drop the case coincided with Paul Atkins, a Trump nominee and known crypto-friendly policymaker, officially taking over as SEC Chair.
Helium stated that the outcome of the case confirms the legality of its operations, particularly the distribution of HNT, IOT, and MOBILE tokens, as well as the sale of Helium-compatible Hotspots. The company believes that the SEC's decision affirms these tokens are not securities and that hardware distribution for network expansion does not automatically fall under securities law.
HNT’s market cap since launch (Source: CoinMarkletCap)
The Helium network enables people to build and operate decentralized wireless infrastructure, and currently hosts around 375,000 active hotspots. While HNT’s market capitalization sits near $506 million, it is still far from its all-time high of over $5 billion from November of 2021.
The SEC’s retreat from aggressive crypto enforcement signals a sharp pivot in regulatory policy since Trump assumed office. Under Gensler, the agency launched more than 100 enforcement actions targeting crypto firms. But since January, the SEC dropped cases against several high-profile entities including Coinbase, Kraken, Ripple, and Uniswap. Trump made his pro-crypto stance very clear, and vowed to turn the US into a global crypto hub.
Despite this shift, not all industry participants are optimistic. Some executives worry that Trump’s other policies, like newly announced tariffs on US imports, could ultimately hinder the industry’s growth despite the new regulatory relief.
SEC Staff Offers Crypto Firms Clarity
The SEC’s Division of Corporation Finance recently issued a staff statement offering some guidance on how federal securities laws might apply to the crypto industry. While the statement holds no legal force, it was made to clarify disclosure expectations for companies issuing or dealing with digital assets that could be considered securities. The Division clarified that its views are based on observations from past disclosures and feedback from market participants.
Part of the SEC’s staff statement (Source: SEC)
According to the SEC staff, crypto firms have typically shared various details about their operations, like the nature of their business, the functionality of their tokens, and how they plan to generate revenue. The guidance suggests that companies should also disclose whether they intend to stay active in a blockchain network or application after its launch and identify any successors who may assume operational responsibilities.
The staff further recommended that disclosures should include technical specifics about the underlying blockchain, including whether it uses proof-of-work or proof-of-stake, block size, transaction speed, incentive structures, network security features, and whether the code is open-source. These elements help paint a clearer picture of the project for regulators and investors.
While the guidance reiterated that tokens not classified as securities or part of an investment contract are not subject to registration requirements, it did not provide concrete criteria for determining what qualifies as a security. Despite this omission, legal experts like Joe Carlasare welcomed the statement as a positive move toward more predictable and consistent regulation. He believes that following these guidelines could help firms position themselves more favorably with regulators.
(Source: SEC)
The SEC also urged crypto companies to disclose all relevant risks, including price volatility, cybersecurity concerns, custody arrangements, and standard business and legal risks. The guidance stated that issuers should provide a “materially complete description” of any token considered a security. This includes how dividends or distributions are handled, voting rights, and who holds the authority to change smart contracts or protocol code. Firms should also disclose whether such smart contracts have undergone third-party security audits.
Additionally, the Division recommended that firms specify whether a token has a fixed supply, how and when it was or will be issued, and who the key executives or major employees are. The SEC plans to build on this initiative by organizing a series of roundtables through its Crypto Task Force to engage with the industry on issues including crypto trading, custody, tokenization, and decentralized finance.
Block Settles for $40M Over Cash App Violations
While Helium is now off the hook with the SEC, Jack Dorsey’s Block Inc. recently agreed to a $40 million settlement with the New York Department of Financial Services over allegations related to compliance failures in its Cash App platform. According to Bloomberg, which reviewed the consent order, the settlement follows an investigation into Cash App’s anti-money laundering and crypto compliance practices. Regulators concluded that Block allegedly failed to meet consumer protection requirements, did not perform adequate due diligence on its customers, and was slow to report suspicious transactions involving high-risk Bitcoin activity.
Although Block confirmed it worked with the NYDFS to resolve the matter, it did not admit to any wrongdoing. The company stated that the settlement primarily relates to legacy compliance issues. The agreement is the second major fine Block faced this year already, after an earlier $80 million settlement with multiple state regulators over similar AML concerns.
Despite these regulatory setbacks, Block’s financial performance stayed very resilient through the end of 2024. The company reported a 4.5% increase in year-over-year revenue, reaching $6.03 billion, while earnings per share jumped by 51% to $0.71. Merchant gross payment volume also grew by 10%, totaling $61.95 billion.
Cash App, which is the central driver of Block’s business, recorded $1.38 billion in gross profit during the fourth quarter and maintained a strong user base of over 57 million monthly transacting users in early 2024. Cash App has supported Bitcoin purchases since 2018 and has taken steps to improve its crypto functionality, including a 2023 integration with TaxBit to simplify crypto tax reporting for users.
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Helium Scores Legal Victory as SEC Dismisses Lawsuit
The case was originally filed in January of 2025, and it accused Nova Labs of issuing unregistered securities through its HNT token. Now, its dismissal with prejudice confirms the SEC cannot revisit the charges. Meanwhile, the SEC recently issued new guidance to provide some more clarity on crypto disclosures, but it stopped short of defining what constitutes a security. While the lawsuits against other crypto companies were dropped, Jack Dorsey’s Block Inc. settled with New York regulators for $40 million over Cash App compliance failures.
SEC Ends Legal Battle With Helium
The US Securities and Exchange Commission (SEC) officially dropped its lawsuit against Nova Labs, the company behind the decentralized wireless network Helium. This is according to a blog post that was published by Helium on April 10.
The suit was originally filed in January of 2025, and it alleged that Nova Labs issued unregistered securities when it launched its native token, Helium (HNT), in 2019. However, the SEC’s dismissal of the case “with prejudice” means the agency cannot pursue similar charges against the company again.
This was one of the last enforcement actions that was initiated under former SEC Chair Gary Gensler, who resigned after the inauguration of President Donald Trump on Jan. 20. The agency's decision to drop the case coincided with Paul Atkins, a Trump nominee and known crypto-friendly policymaker, officially taking over as SEC Chair.
Helium stated that the outcome of the case confirms the legality of its operations, particularly the distribution of HNT, IOT, and MOBILE tokens, as well as the sale of Helium-compatible Hotspots. The company believes that the SEC's decision affirms these tokens are not securities and that hardware distribution for network expansion does not automatically fall under securities law.
HNT’s market cap since launch (Source: CoinMarkletCap)
The Helium network enables people to build and operate decentralized wireless infrastructure, and currently hosts around 375,000 active hotspots. While HNT’s market capitalization sits near $506 million, it is still far from its all-time high of over $5 billion from November of 2021.
The SEC’s retreat from aggressive crypto enforcement signals a sharp pivot in regulatory policy since Trump assumed office. Under Gensler, the agency launched more than 100 enforcement actions targeting crypto firms. But since January, the SEC dropped cases against several high-profile entities including Coinbase, Kraken, Ripple, and Uniswap. Trump made his pro-crypto stance very clear, and vowed to turn the US into a global crypto hub.
Despite this shift, not all industry participants are optimistic. Some executives worry that Trump’s other policies, like newly announced tariffs on US imports, could ultimately hinder the industry’s growth despite the new regulatory relief.
SEC Staff Offers Crypto Firms Clarity
The SEC’s Division of Corporation Finance recently issued a staff statement offering some guidance on how federal securities laws might apply to the crypto industry. While the statement holds no legal force, it was made to clarify disclosure expectations for companies issuing or dealing with digital assets that could be considered securities. The Division clarified that its views are based on observations from past disclosures and feedback from market participants.
Part of the SEC’s staff statement (Source: SEC)
According to the SEC staff, crypto firms have typically shared various details about their operations, like the nature of their business, the functionality of their tokens, and how they plan to generate revenue. The guidance suggests that companies should also disclose whether they intend to stay active in a blockchain network or application after its launch and identify any successors who may assume operational responsibilities.
The staff further recommended that disclosures should include technical specifics about the underlying blockchain, including whether it uses proof-of-work or proof-of-stake, block size, transaction speed, incentive structures, network security features, and whether the code is open-source. These elements help paint a clearer picture of the project for regulators and investors.
While the guidance reiterated that tokens not classified as securities or part of an investment contract are not subject to registration requirements, it did not provide concrete criteria for determining what qualifies as a security. Despite this omission, legal experts like Joe Carlasare welcomed the statement as a positive move toward more predictable and consistent regulation. He believes that following these guidelines could help firms position themselves more favorably with regulators.
(Source: SEC)
The SEC also urged crypto companies to disclose all relevant risks, including price volatility, cybersecurity concerns, custody arrangements, and standard business and legal risks. The guidance stated that issuers should provide a “materially complete description” of any token considered a security. This includes how dividends or distributions are handled, voting rights, and who holds the authority to change smart contracts or protocol code. Firms should also disclose whether such smart contracts have undergone third-party security audits.
Additionally, the Division recommended that firms specify whether a token has a fixed supply, how and when it was or will be issued, and who the key executives or major employees are. The SEC plans to build on this initiative by organizing a series of roundtables through its Crypto Task Force to engage with the industry on issues including crypto trading, custody, tokenization, and decentralized finance.
Block Settles for $40M Over Cash App Violations
While Helium is now off the hook with the SEC, Jack Dorsey’s Block Inc. recently agreed to a $40 million settlement with the New York Department of Financial Services over allegations related to compliance failures in its Cash App platform. According to Bloomberg, which reviewed the consent order, the settlement follows an investigation into Cash App’s anti-money laundering and crypto compliance practices. Regulators concluded that Block allegedly failed to meet consumer protection requirements, did not perform adequate due diligence on its customers, and was slow to report suspicious transactions involving high-risk Bitcoin activity.
Although Block confirmed it worked with the NYDFS to resolve the matter, it did not admit to any wrongdoing. The company stated that the settlement primarily relates to legacy compliance issues. The agreement is the second major fine Block faced this year already, after an earlier $80 million settlement with multiple state regulators over similar AML concerns.
Despite these regulatory setbacks, Block’s financial performance stayed very resilient through the end of 2024. The company reported a 4.5% increase in year-over-year revenue, reaching $6.03 billion, while earnings per share jumped by 51% to $0.71. Merchant gross payment volume also grew by 10%, totaling $61.95 billion.
Cash App, which is the central driver of Block’s business, recorded $1.38 billion in gross profit during the fourth quarter and maintained a strong user base of over 57 million monthly transacting users in early 2024. Cash App has supported Bitcoin purchases since 2018 and has taken steps to improve its crypto functionality, including a 2023 integration with TaxBit to simplify crypto tax reporting for users.
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