The U.S. Securities and Exchange Commission (SEC) has officially dropped its lawsuit against Nova Labs, the developer of the Helium Network. The case alleged that the company violated securities laws by issuing unregistered tokens, but was dismissed with prejudice, meaning it cannot be refiled in the future.
Filed in January 2025, the lawsuit marked one of the final enforcement actions under former SEC Chair Gary Gensler. His departure and the subsequent appointment of Paul Atkins as the new SEC Chair on April 10 signal a possible change in how the agency approaches crypto regulation.
Helium responded to the decision in a blog post, stating that the outcome confirms its tokens—HNT, IOT, and MOBILE—are not securities. The company emphasized that selling network hardware and distributing tokens for ecosystem growth does not automatically place them under the SEC’s securities framework.
Fraud Allegations Settled with Civil Penalty
Although the unregistered securities case has been dropped, Nova Labs did agree to pay a $200,000 civil penalty to settle separate fraud allegations. These stemmed from claims that the company misrepresented partnerships with well-known brands like Nestlé and Salesforce during a 2021–2022 fundraising round.
Nova Labs settled without admitting or denying the SEC’s findings, a standard approach in regulatory cases.
A New Era Under SEC Chair Paul Atkins
The same day the lawsuit was dismissed, Paul Atkins was confirmed by the Senate as the new SEC Chair in a 52-44 vote. Known for his crypto-friendly views, Atkins is expected to take a more collaborative and innovation-friendly approach to digital asset regulation.
Under Gensler’s leadership, the SEC filed over 100 enforcement actions against Web3 developers. But since President Trump took office in January, the agency has begun withdrawing several high-profile cases, including those against Coinbase, Ripple, Kraken, and Uniswap.
Trump has also made bold crypto promises, such as creating a national Bitcoin reserve and positioning the U.S. as a global leader in digital assets.
Implications for the Crypto Industry
Helium’s legal victory, combined with the SEC’s new direction, may provide relief for other blockchain projects previously targeted under the old regulatory regime. It also sets a precedent that could influence how decentralized networks structure token distributions moving forward.
With regulatory momentum now swinging in favor of clearer guidelines and reduced hostility, the crypto industry could be on the verge of a new, more collaborative phase of growth.
