Helium (HNT) Jumps 6% as SEC Drops Unregistered Securities Lawsuit: Regulatory Clarity Boosts Sentiment
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has dismissed its lawsuit against Nova Labs, the developer behind the Helium Network, establishing that the project’s tokens are not securities. This regulatory win comes as Helium (HNT) shows positive market momentum, currently trading at approximately $2.89, up over 6% in the past 24 hours.
End of Gensler Era: SEC Reverses Course on Crypto Enforcement
Originally filed in January 2025, the complaint against Nova Labs was among the last enforcement actions taken by the SEC under former Chair Gary Gensler before he resigned following the inauguration of President Donald Trump. With regard to its HNT, IOT, and MOBILE tokens, the dismissal with prejudice implies Nova Labs cannot be subject to similar securities violation accusations going forward.
“We can now unequivocally say that all compatible Helium Hotspots and the distribution of HNT, IOT, and MOBILE tokens through the Helium Network are not securities,” Helium said in an April 10 blog post. “The outcome establishes that, in the views of the SEC, selling hardware and distributing tokens for network growth does not automatically make them securities.”
This ruling marks a significant precedent for Decentralized Physical Infrastructure Networks (DePIN), therefore eliminating legal doubt for like projects leveraging crypto incentives to create actual infrastructure.
Nova Labs to Pay $200,000 Fine Over Investor Disclosures
Court records show that Nova Labs agreed to pay a $200,000 civil penalty to settle fraud allegations without admitting or denying wrongdoing, even as they celebrated the tiny classification triumph. During a 2021–2022 fundraising cycle in which it raised $200 million at a $1 billion value, the SEC has accused the business of deceiving institutional investors.
The complaint claims that Nova Labs claimed to be active users of Helium technology, exaggerating ties with big companies such Nestle, Salesforce, and Lime, while the real contacts were limited and mostly happened before the network’s 2019 launch. The blog post of the corporation declaring the dismissal of the SEC complaint made no reference of this cash settlement.
Helium Network’s Growth Continues Despite Legal Challenges
With a blockchain network meant to let anybody create and run WiFi networks, Helium notes around 375,000 active hotspots worldwide. The approach seeks to build distributed wireless infrastructure for mobile connectivity and Internet of Things (IoT) devices.
Helium’s market position is strong despite legal obstacles; as of April 10, its market value is around $480 million. Although this marks a notable drop from its November 2021 peak of over $5 billion, the removal of regulatory uncertainty could offer a basis for fresh expansion.
Broader Implications for Crypto Regulation Under Trump Administration
Under Trump-appointed leadership, the Helium case resolution joins a tsunami of SEC reversals. Since President Trump took office in January, the agency has dropped proceedings against many well-known cryptocurrency companies including Coinbase, Binance, OpenSea, Kraken, Consensys, and Uniswap.
Particularly noteworthy is the timing of the dismissal—that same day Trump nominee Paul Atkins formally succeeded Gensler as SEC Chair following Senate confirmation. Though generally considered as crypto-friendly, Atkins has said he intends to give developing a legal framework for digital assets first priority.
Acting Chair Mark Uyeda and Commissioner Hester Peirce aggressively worked to dismiss crypto enforcement cases during the interim period between Gensler’s departure and Atkins’ confirmation, releasing declarations exempting several digital asset categories from securities legislation.
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