The U.S. Securities and Exchange Commission (SEC) has officially dismissed its case against Nova Labs, the team behind the Helium Network, over allegations of selling unregistered securities.
In an April 11 blog post on Medium, the Helium team celebrated the development as a “major win for Helium (HNT) and The People’s Network,” saying the move brings long-awaited clarity to the regulatory status of its tokens — HNT, IOT, and MOBILE.
“The dismissal with prejudice” — meaning the SEC cannot refile the same charges in the future — closes a turbulent chapter for Helium and the broader Decentralized Physical Infrastructure Network (DePIN) ecosystem.
A Turning Point for Token-Based Infrastructure Projects
Nova Labs emphasized that the outcome demonstrates that selling hardware and distributing tokens to incentivize network growth does not automatically constitute a securities offering under U.S. law. The team also praised the SEC’s new leadership under the Trump administration for showing a more innovation-friendly stance.
While the blog post didn’t mention any financial penalties, court documents reviewed by Yahoo Finance confirmed that Nova Labs agreed to pay a $200,000 civil penalty to settle separate securities fraud charges.
These charges were tied to allegedly overstating partnerships with major firms like Nestlé, Lime, and Salesforce during a 2021–2022 fundraising round, which had valued the company at $1 billion. Notably, Nova Labs did not admit or deny wrongdoing as part of the settlement.
Policy Shift Under New SEC Chair Paul Atkins
This dismissal is part of a broader regulatory shift. Since former SEC Chair Gary Gensler stepped down, the SEC has dropped several high-profile cases against major crypto players, including Coinbase, Kraken, and Consensys.
Crypto-friendly Paul Atkins, confirmed as SEC Chair on April 10, is expected to lead the agency toward clearer and more favorable crypto regulations. Known for his advocacy for digital asset innovation, Atkins’ leadership signals a more collaborative approach between regulators and Web3 developers.
