SEC Dismisses Claims Against Helium – A Major Win for The People’s Network

The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss claims that Nova Labs, the founding team behind Helium, sold unregistered securities. This marks a major win for Helium and the entire crypto industry. The SEC dismissal makes it clear that all compatible Helium Hotspots and the token model that powers the Helium Network—including HNT, IOT, and MOBILE—are not securities.

This landmark outcome is a pivotal turning point for Helium and the broader crypto industry, removing legal uncertainty for Decentralized Physical Infrastructure Networks (DePIN) that use crypto incentives to build real-world infrastructure. With the dismissal of these allegations with prejudice, today’s outcome establishes that selling hardware and distributing tokens for network growth does not, de facto, make either the hardware or the tokens securities in the eyes of the SEC. It also means that the SEC cannot bring these charges against Nova Labs and Helium in the future.

At the same time, Nova Labs chose to resolve the case efficiently by agreeing to a $200,000 no admit/no deny settlement tied to its Series D equity financing. The SEC’s decision to settle its lawsuit for a small fraction of the penalties seen in past crypto enforcement actions speaks for itself.

Key Wins for Helium:

• Hotspots and Token Rewards Are Not Securities: For the first time, the SEC has conceded that crypto-powered infrastructure hardware and token rewards are not securities.
  
  
• Permanent Dismissal of SEC’s Core Claims: The SEC’s Section 5 (unregistered securities sales) and Section 10(b) (securities fraud) allegations were dismissed with prejudice, ensuring they can never be refiled against Nova Labs and Helium.
  
  
• Regulatory Clarity Opens the Door for Crypto: This decision removes a major regulatory uncertainty for crypto, and finally clarifies that the conduct of selling hardware and distributing tokens as network rewards does not automatically make them securities.

A Defining Moment for Helium and Crypto
The SEC’s resolution reinforces the fundamental value proposition of real-world crypto utility, with Helium serving as the blueprint for how DePIN projects can achieve regulatory clarity. With this chapter finally closed, Nova Labs, Helium, and the community can now move forward with full confidence, accelerating adoption and innovation in decentralized wireless and crypto-powered infrastructure.

About Nova Labs:
Started in 2013, Nova Labs is the founding team behind the open-source Helium Network and Helium Mobile, a new phone carrier that puts power in the hands of the people. As the pioneer of decentralized wireless communications, Nova Labs is on a mission to revolutionize how we connect by making connectivity affordable and accessible for all. For more information, visit nova.xyz.

Contact Information

Sarah Aberg

Chief Legal Officer

Nova Labs

Contact via E-mail