In a pivotal legal development, the U.S. Securities and Exchange Commission (SEC) has officially dismissed its securities case against Nova Labs, the developer behind the Helium Network, effectively closing a major regulatory dispute in the Decentralized Physical Infrastructure Network (DePIN) space.
Announced via a blog post published April 11, the Helium team described the outcome as a “major win” for Helium (HNT) and its associated tokens — HNT, IOT, and MOBILE — stating that the decision “brings long-awaited clarity” to the regulatory classification of such utility tokens in the U.S.
The dismissal with prejudice, meaning the SEC cannot refile the same charges, ends a prolonged period of uncertainty that had threatened the growth of hardware-based token incentive models in the U.S. market.
Implications for Token-Fueled Infrastructure Models
Nova Labs underscored the significance of the ruling, emphasizing that the SEC’s dismissal validates their belief that token distribution for network incentives does not inherently qualify as a securities offering.
The team credited the outcome in part to a shift in SEC leadership, noting the Trump administration’s recent pro-innovation stance under newly confirmed SEC Chair Paul Atkins.
While the dismissed case involved unregistered securities allegations, court filings revealed that Nova Labs did agree to pay a $200,000 civil penalty to settle separate securities fraud charges, unrelated to the token model itself.
These charges stemmed from allegedly overstating business partnerships with major brands — including Nestlé, Lime, and Salesforce — during a 2021–2022 fundraising round that had valued Nova Labs at $1 billion. As part of the settlement, Nova Labs did not admit or deny wrongdoing.
A Broader Shift Under SEC Chair Paul Atkins
The case is among several high-profile crypto lawsuits dismissed by the SEC in recent weeks, including actions against Coinbase, Kraken, and Consensys. These dismissals reflect an evolving regulatory stance under Chair Paul Atkins, confirmed on April 10, who has consistently advocated for clearer, innovation-friendly guidelines for digital assets.
This legal shift is expected to open the door for DePIN and token-based infrastructure projects that previously operated under regulatory uncertainty, signaling a more cooperative era between federal agencies and the Web3 community.
