SEC Dismisses Helium Case, Ends Gary Gensler’s Final Act

The US Securities and Exchange Commission has officially dismissed its lawsuit against Nova Labs. This is the company behind the Helium Network and it changes regulatory attitudes toward decentralized blockchain projects. The decision confirms that Helium’s tokens and its network’s hotspot devices are not securities. 

A Precedent-Setting Ruling for Blockchain Projects

With this dismissal, the SEC has effectively acknowledged that “selling hardware and distributing tokens for network growth does not automatically make them securities,” Helium stated in a public announcement on Thursday. 

The ruling sets a precedent for similar blockchain projects that integrate crypto incentives into real-world infrastructure. At the same time, it reduces the legal uncertainty in the industry.

For Helium, the SEC’s reversal removes a major roadblock. The company can now continue expanding its network without regulatory scrutiny. The dismissal also shows a shift in how the SEC will regulate crypto-related businesses under the new leadership of Paul Atkins. Apparently, Atkins was confirmed by the Senate on Wednesday to replace outgoing chair Gary Gensler.

The SEC’s Regulatory Shift Under New Leadership

This decision is one of several reversals the SEC has undertaken in recent months following Gensler’s departure. Under the interim leadership of Acting Chair Mark Uyeda and Commissioner Hester Peirce, the agency has moved away from its previous stance of “regulation by enforcement.” During this transition, the SEC dismissed several high-profile lawsuits against crypto companies. Cases against Binance, Coinbase, and Open Sea were dismissed. 

Additionally, the agency clarified that meme coins, crypto mining operations, and stablecoins would not be classified as securities.

For many in the crypto industry, the dismissal of the Helium lawsuit is seen as the final chapter of Gensler’s “failed crusade” against crypto assets. The lawsuit, originally filed on January 17, accused Nova Labs of violating securities laws by selling unregistered tokens. It alleged that they misled investors about partnerships with companies like Nestlé and Salesforce.

At the time, Helium co-founder and Nova Labs CEO Amir Haleem criticized the SEC’s actions. He called them “the last gasp of a failed effort to regulate crypto into oblivion.” With the case dismissed, the SEC agreed to a modest $200,000 “no admit/no deny” settlement.

Implications for the Broader Crypto Industry

The SEC’s decision to drop its case against Helium represents a key moment for projects that use blockchain technology. The ruling validates Helium’s business model. It also provides regulatory clarity for other DePIN projects that use token-based incentives to grow their networks.

The news shows a shift in regulation under the Trump administration’s SEC leadership. The agency is now led by Paul Atkins and supported by crypto-friendly commissioners like Hester Peirce. Industry analysts believe this could lead to more investment in blockchain-based projects.

Helium’s Next Steps and Market Reaction

According to CoinGecko, Helium’s native token remained relatively stable, trading at $2.76 following the announcement. For Helium, the focus now shifts to scaling its network and onboarding more users. 

The company recently announced its “Zero Plan.” It is a free 5G wireless service that offers 3GB of data, 300 texts, and 100 minutes of calls per month at no cost to users. The initiative is designed to show Helium’s ability to change the telecom industry. It also demonstrates the viability of a decentralized and community-powered network.

In a statement following the SEC’s dismissal, Nova Labs reaffirmed its commitment to its mission. They said connectivity should be “affordable and accessible for all.” 

A Turning Point for Crypto Regulation

The dismissal of the Helium case is just one of many signals that the regulatory tide is turning for the crypto industry. Under the previous SEC leadership, companies faced an aggressive enforcement environment. However, the new administration prefers a more constructive approach. Hence, the crypto industry may finally have the room to grow.

This regulatory clarity could lead to increased adoption and investment for blockchain projects like Helium. Furthermore, DePIN networks can operate without the fear of being classified as a security. According to reports, many experts believe this could lead to more investments in the DePIN sector. 

As the SEC steps back from its aggressive stance, crypto advocates see this as a potential inflection point. Subsequently, regulators and blockchain companies can engage in more productive discussions about the future of crypto assets. 

Helium has shared their plans, saying, “We thank the new leadership at the SEC for finally providing clarity and look forward to a new era where innovation can truly thrive. With this chapter finally closed, Helium and the community can now move forward with full confidence, accelerating adoption and real-world innovation in decentralized wireless and crypto-powered infrastructure.”