In a significant move signaling a new regulatory era, the U.S. Securities and Exchange Commission (SEC) has officially dropped its case against Nova Labs, the creators of the Helium Network. The decision marks a turning point for crypto regulation, particularly regarding decentralized networks and tokenized ecosystems.
The SEC had initially sued Nova Labs on January 17, accusing the company of offering unregistered securities and misleading investors with exaggerated claims about partnerships with firms like Nestlé and Salesforce. However, in a dramatic reversal, the SEC concluded that Helium’s tokens and hotspot devices do not qualify as securities under existing laws.
The agency’s dismissal highlights that “selling hardware and distributing tokens for network growth does not automatically constitute a securities offering,” according to a statement by Helium on Thursday. This clarification not only clears the Helium Network of wrongdoing but also sets a broader precedent for decentralized physical infrastructure projects that rely on token incentives.
This move comes amid a leadership transition at the SEC. Former Chair Gary Gensler, known for his aggressive stance against the crypto sector, exited the agency as Paul Atkins was confirmed as the new chairman by the Senate in a 52-44 vote. Many in the crypto space have seen Gensler’s tenure as marked by heavy-handed enforcement rather than thoughtful regulation. The Helium case was considered one of his final major actions before stepping down.
Amir Haleem, Helium’s co-founder and CEO of Nova Labs, had previously labeled the lawsuit as “the last gasp of a failed crusade against crypto companies in the U.S.” The company expressed relief and optimism following the case’s dismissal.
As part of the agreement to resolve the matter, Nova Labs agreed to a relatively small $200,000 settlement related to its Series D equity fundraising. Notably, this was a “no admit/no deny” deal, meaning the company did not acknowledge any wrongdoing—a stark contrast to larger fines and penalties imposed on other crypto firms in recent years.
The Helium decision is just one in a growing list of SEC reversals under the Trump-appointed leadership. In the weeks following Gensler’s departure, the interim SEC leadership, including Acting Chair Mark Uyeda and Commissioner Hester Peirce, has already moved to drop several high-profile cases against major players like Binance, Coinbase, and OpenSea. They’ve also released statements clarifying that meme coins, crypto mining, and stablecoins will no longer be treated as securities by default.
Despite the legal win, Helium’s native token (HNT) remained mostly stable, trading at $2.76 as of Thursday, according to CoinGecko.
The dismissal of the Helium case not only signals a regulatory pivot but also offers hope to Web3 projects that have long operated in legal uncertainty. Many in the blockchain industry now see this moment as the start of a more balanced approach to crypto oversight in the U.S.