The U.S. Securities and Exchange Commission has officially dropped its lawsuit against Nova Labs, the company behind the Helium Network. The legal action had accused the firm of selling unregistered securities through three of its crypto tokens.
Helium Network Token (HNT), Helium Mobile Token (MOBILE), and Helium IoT Network Token (IoT) were at the center of the SEC’s now-dismissed case. The lawsuit was initially filed in January, just days before Gary Gensler stepped down as SEC Chair.
Nova Labs outlines this decision as a protection that prevents the SEC from using the exact charges against the company in the future. The company declared that dispersing crypto tokens and hardware sales to grow networks does not necessarily equate to securities status.
Also Read: Best Time to Short XRP? Here’s What Experts Are Saying
A blog post from Nova Labs delivered this news on Thursday, bringing delight to the Helium community members. The firm announced this outcome as a significant win for crypto-based decentralization programs using incentive systems.
Crypto Enforcement Retreats Under New SEC Leadership
Since President Donald Trump resumed office in January, the SEC has scaled back legal actions against several digital asset firms. The court has terminated or frozen the legal proceedings against Coinbase alongside OpenSea, Kraken, Uniswap, and Consensys.
The SEC leadership transition has occurred during this time. Paul Atkins proved his support for crypto regulation as he received confirmation to lead the agency on Wednesday evening. According to his latest announcement, building a proper regulatory framework for digital assets emerges as one of his prime priorities.
Nova Labs presented the SEC’s withdrawal from digital asset firms as a crucial advancement for the cryptocurrency industry. The framework allows DePIN (Decentralized Physical Infrastructure Networks) projects to operate under reduced legal ambiguity when utilizing cryptocurrency incentives to drive their real-world systems.
The SEC declined to comment on the decision. However, the withdrawal of charges reflects a broader recalibration of crypto regulation under the current administration.
Conclusion
The decision to drop the case against Nova Labs signals a major shift in how U.S. regulators approach crypto-related infrastructure. With new leadership, the SEC appears to be easing legal pressure on blockchain projects.
Also Read: Here’s Why Ripple and SEC Requested to Halt Appeal Process, A Strategic Move?
