The Securities and Exchange Commission has dismissed its claim that Nova Labs, creators of Helium, sold unregistered securities. This decision confirms that Helium Hotspots and tokens like HNT, IOT, and MOBILE are not considered securities.
Legal Uncertainty Removed
The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its claim that Nova Labs, the founding team behind Helium, sold unregistered securities. Dropping the claim means that all compatible Helium Hotspots and tokens distributed through the Helium Network, such as HNT, IOT, and MOBILE, are not considered securities. However, Nova Labs reportedly agreed to pay $200,000 to settle civil securities fraud charges.
In a post on Medium, the Helium team described the outcome as a turning point for its community and the entire crypto industry. For Helium and other decentralized physical infrastructure (DePIN) projects, the agreement removes legal uncertainty and establishes that selling hardware and distributing tokens for network growth do not constitute security offerings. Notably, the agreement precludes the SEC from bringing up the charges in the future.
“We thank the new leadership at the SEC for finally providing clarity and look forward to a new era where innovation can truly thrive. With this chapter finally closed, Helium and the community can now move forward with full confidence, accelerating adoption and real-world innovation in decentralized wireless and crypto-powered infrastructure,” the Helium team stated.
On January 17, just three days before Donald Trump’s inauguration, the SEC charged Nova Labs with allegedly conducting unregistered offerings of crypto assets as securities and defrauding investors. It also accused Nova Labs of making materially “false and misleading” statements to prospective investors about prominent companies relying on its network.
According to the SEC complaint, Nova Labs violated two sections of the Securities Act of 1933, as well as Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. As punishment for the violations, the SEC proposed permanent and conduct-based injunctions, disgorgement of ill-gotten gains, pre-judgment interest, and civil penalties.
The dismissal of the charges allows Helium to focus on building for a “future where everyone and everything can connect—without the barriers of inflated costs or gatekeepers standing in the way.”