Helium tokens surge after SEC drops Nova Labs lawsuit

The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Nova Labs, the developer of the Helium Network, marking a significant turning point for decentralised blockchain projects.

Filed in January 2025, the lawsuit alleged that Nova Labs sold unregistered securities through its issuance of Helium (CRYPTO:HNT) tokens (HNT, IOT, and MOBILE) and misled investors about partnerships with major companies such as Nestlé, Lime, and Salesforce.

The dismissal with prejudice means the SEC cannot refile similar charges against Nova Labs regarding its token distribution model.

However, the company agreed to pay a $200,000 penalty to settle related claims without admitting or denying wrongdoing.

According to Helium’s statement, this outcome confirms that distributing tokens for network growth does not classify them as securities under U.S. law.

Nova Labs described the ruling as a pivotal moment for the Helium community and broader Decentralised Physical Infrastructure Network (DePIN) sector.

“This landmark outcome removes legal uncertainty for projects using crypto incentives to build real-world infrastructure,” the firm stated.

The timing of the dismissal coincided with Paul Atkins assuming leadership as SEC Chair following Gary Gensler’s departure earlier this year.

Under Atkins’ administration, the SEC appears to be shifting away from aggressive enforcement tactics that characterised Gensler’s tenure.

Following the announcement, Helium tokens experienced a sharp rally.

Data from CoinGecko shows HNT, IOT, and MOBILE surged over 50% in the past week, reflecting renewed investor confidence in the project’s regulatory clarity.

The case also highlights evolving attitudes toward blockchain regulation under new SEC leadership.

Experts suggest this decision could set a precedent for other crypto projects integrating token-based incentives into infrastructure development.

Helium plans to continue expanding its decentralised wireless network, which currently boasts around 375,000 active hotspots globally.

At the time of reporting, the Helium (HNT) price was $3.78.