Nova Labs, the creator of the Helium Network, said the U.S. Securities and Exchange Commission has dropped its claims that the firm sold unregistered securities.
That means that selling “hardware and distributing tokens for network growth” does not automatically make them securities, Helium said on Thursday in a blog post.
“After the prior leadership at the SEC sued Nova Labs on the literal eve of the incoming administration, this landmark outcome is a pivotal turning point for the Helium community and the entire crypto industry, removing legal uncertainty for DePIN projects that use crypto incentives to build real-world infrastructure,” the firm said.
The SEC declined to comment.
The SEC sued Nova Labs in January, days before former agency Chair Gary Gensler resigned on Jan. 20. The lawsuit involved three Helium-related tokens — the Helium Network Token (HNT), Helium Mobile Token (MOBILE) and and the Helium IoT Network Token (IoT) — all of which the SEC said were unregistered securities.
The SEC cannot bring these charges against the firm in the future, Helium said.
The company also agreed to pay $200,000, without admitting or denying claims involving private placement.
In January, the SEC also accused Nova Labs of misleading investors about several high-profile partnerships. The company told investors that companies such as Nestlé, Lime, and Salesforce were using the network when the customers were neither customers nor “users,” the SEC said.
“Because of the SEC’s gag rule, we can’t admit or deny these claims, but we can point out that, both at the time of those statements and today, data usage on the Helium Network has always been publicly available,” Helium Chief Legal Officer Sarah Aberg said in an email.
Aberg also noted that the agency did not ask for an injunction.
“This is a significant departure from their normal practice and speaks to the SEC’s own views regarding the materiality of these claims,” Aberg said.
Since President Donald Trump took office in January, the SEC has ended its legal pursuits of several crypto firms, including Coinbase, OpenSea, Kraken, Consensys and Uniswap, among others. The SEC also now has a new chair, crypto-friendly former regulator Paul Atkins. Atkins was just confirmed by the Senate on Wednesday evening and has said he plans to make creating a regulatory framework for digital assets a “top priority.”
Update: April 11, 3:50 p.m. UTC to include details about the settlement involving paying $200,000
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
