SEC Drops Helium Securities Case, Fines Nova Labs $200,000
2min read The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against nova Labs, the team behind the decentralized wireless network Helium. The lawsuit, which was filed in early 2025 during the final days of Gary Gensler’s tenure as SEC Chair, accused Nova Labs of offering unregistered securities. The dismissal, made “with prejudice,” ensures that the SEC cannot pursue the same allegations again, specifically regarding Helium’s distribution of its native HNT token back in 2019.
In a blog post, Helium emphasized that this resolution confirms that their network’s tokens—including HNT, IOT, and MOBILE—do not fall under the category of securities. The company argued that providing hardware and issuing tokens to incentivize network participation does not violate federal securities laws. This clarification is a significant victory for Helium and sets a precedent for other decentralized wireless initiatives.
The reversal in the SEC’s stance came just as Paul Atkins, nominated by President Donald Trump, took over leadership of the SEC. This leadership change signals a broader shift in regulatory posture. Under Gensler, the SEC launched a flurry of enforcement actions against crypto projects, often targeting them for allegedly selling tokens that resembled investment contracts. Since Trump’s inauguration and Gensler’s exit in January, several high-profile cases have been dropped, with companies like Ripple, Uniswap, Kraken, and Coinbase seeing charges rolled back.
Helium, which allows individuals to contribute to a global wireless network by setting up physical hotspots, claims over 375,000 active nodes. The network’s token, HNT, once reached a market cap of over $5 billion in 2021, but it currently stands at around $480 million. While Trump’s administration has embraced crypto more openly—pledging to make the U.S. a hub for digital assets and even proposing a national Bitcoin reserve—some within the industry remain cautious. His broader economic policies, including sweeping import tariffs, could still complicate the road ahead for crypto development.
Despite the dismissal of the securities claims, the SEC will still fine Nova Labs with a $200,000 fine related to their civil case involving major firms, including Nestle, Lime, and Salesforce. The SEC claimed that they engaged in fundraising misconduct by making inflated claims about their relation to major firms, during a 2021-2022 token sale. The SEC argues that they inflated their valuation to $1 billion by luring investors under false pretenses. Despite Helium only having limited contact with companies like Nestle, they presented these companies as partners and users of their technology. However, The $200k settlement allows Helium to move on without admitting guilt. Crypto projects, moreover, should learn a lesson from the incident, remembering the dangers of marketing a fundraising campaign.
“With the dismissal of the SEC’s unregistered securities claims with prejudice,” Helium wrote on their blog, “the outcome establishes that selling hardware and distributing tokens for network growth does not automatically make them securities in the eyes of the SEC.” This decision allows Helium to continue developing its WiFi infrastructure and providing crypto incentives without the looming threat of legal action from the SEC. The Helium team remains optimistic about their vision of creating a fully connected world through blockchain technology.
