Michaela
The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against Nova Labs, the company behind the Helium Network, which had been accused of issuing unregistered securities.
In a blog post on April 10, Helium celebrated the dismissal of the lawsuit, describing it as a “major win for Helium and the people.”
“Today marks a major win for Helium and The People’s Network. Nova Labs, the founding team behind Helium, confirms the SEC has agreed to dismiss with prejudice its claims that Nova Labs sold unregistered securities,” Helium wrote.
The lawsuit filed against Helium marked the regulator’s final action under former Chair Gary Gensler, coming just before the January 2025 transition to the Trump administration.
“[T]his landmark outcome is a pivotal turning point for the Helium community and the entire crypto industry, removing legal uncertainty for DePIN projects that use crypto incentives to build real-world infrastructure,” Helium stated.
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Helium announced that the SEC dismissed its case with prejudice, meaning the regulatory body cannot refile these charges in the future. The company also emphasized that the ruling clarifies that selling hardware and distributing tokens for network expansion does not automatically classify them as securities under SEC regulations.
The SEC’s decision to drop its case came shortly after Paul Atkins was confirmed as the new SEC chair, following a 52-44 vote in the Senate.
Since Gensler’s departure from the SEC, the commission has dismissed several cases against Web3 developers, including those involving Coinbase, Ripple, Uniswap, and Kraken, which were accused of securities violations.
Related: US CFTC Approves Spot Crypto Trading on Regulated Exchanges
During Gensler’s tenure as the Chair of the SEC, the agency became notably aggressive in its approach to regulating the cryptocurrency and Web3 space. Under his leadership, the SEC pursued several high-profile cases, alleging that various cryptocurrency platforms and tokens violated securities laws.
Gensler’s aggressive stance was seen as part of his broader mission to bring more clarity and regulation to the largely unregulated crypto industry, emphasizing that many tokens traded on platforms should be classified as securities under existing laws.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
