The U.S. Securities and Exchange Commission (SEC) has formally dismissed its unregistered securities case against Nova Labs, the founding entity behind the Helium Network. This marks a significant legal development for the decentralized wireless infrastructure project.
According to a statement released by Nova Labs on Wednesday, the SEC agreed to drop the claims with prejudice, meaning the agency cannot pursue the same allegations in the future. The case alleged that the company sold unregistered securities through its Helium Hotspots and associated token distributions, including HNT, IOT, and MOBILE.
The dismissal brings an end to a legal dispute that began under the previous SEC administration. Nova Labs contended the lawsuit was filed just prior to the transition of leadership at the agency. The conclusion of the case may have broader implications for the regulatory outlook on crypto-based decentralized physical infrastructure networks (DePINs).
Implications for DePIN Projects and Token Distribution
The case raised questions about whether the use of blockchain-based tokens as incentives for building physical infrastructure could be considered securities offerings under U.S. law. With the SEC dropping the case, Nova Labs stated that compatible Helium Hotspots and the distribution of network tokens do not fall under securities classifications — at least in this instance.
While the SEC has not issued a formal policy shift, the move to dismiss the case with prejudice may provide a degree of clarity for other projects in the DePIN sector. Legal analysts suggest that the decision could serve as a precedent, though it does not equate to a blanket exemption for similar ventures.
Nova Labs has expressed appreciation toward the current SEC leadership for resolving the matter while reaffirming its commitment to developing decentralized wireless connectivity networks.
Helium Network Eyes Expansion Following Legal Resolution
With the case concluded, Nova Labs says it will now focus on accelerating the adoption of the Helium Network, which allows individuals and organizations to contribute to wireless coverage using blockchain-connected hotspots. The company views the resolution as an opportunity to move forward without regulatory overhang.
The Helium Network has aimed to provide alternative connectivity solutions by enabling individuals to contribute to wireless infrastructure and earn tokens in return. Though the project’s business model remains under scrutiny in broader policy discussions, the dismissal of SEC claims removes a major legal obstacle.
Neither the SEC nor Nova Labs disclosed whether any financial settlements were involved in the dismissal. The agency has not commented publicly on the case’s outcome.
