Helium (HNT) price skyrocketed following the Securities and Exchange Commission (SEC) agreement to dismiss its lawsuit. In doing so, the move provides a boost to the development team building the decentralized wireless network. In January, a lawsuit was filed against Helium. It alleged that the business had broken the securities laws by issuing HNT, MOBILE, and IOT tokens to the public.
In late July, the Helium dev team took to X (formerly Twitter) to disclose that the U.S. regulatory agency had dismissed its lawsuit against the cryptocurrency platform.
Nova Labs, the company that created Helium, settled with the SEC, coming to an agreement to pay $200,000. They agreed to pay the claims without admitting guilt. The SEC eventually settled by consenting to dismiss its unregistered securities claims with prejudice. This dismissal means that the SEC can’t refile these charges against Helium.
The SEC has agreed to dismiss its unregistered securities claims with prejudice. Helium Hotspots and the distribution of HNT, MOBILE, and IOT through the Helium Network are not securities. It also means that the SEC cannot bring these charges against Helium again. - Helium
The lawsuit incomprehensibly dismissed, HNT began to rocket, with the cryptocurrency climbing nearly 9.9% in 24 hours. Over the course of the following week, HNT rose dramatically from a low of $2.62 on April 10th to an impressive peak of $3.03 just a day later.
Helium sees this result as a historic victory. This is a big milestone for both the digital assets industry and Decentralized Physical Infrastructure Networks (DePIN) technology. DePIN technology involves tokenizing real-world infrastructure. The resolution establishes that the sale of hardware and the distribution of tokens to incentivize network growth are not inherently securities. This difference is extremely important under SEC scrutiny.
The Helium Network is a decentralized wireless network crypto project. Helium argues that removing legal uncertainty for DePIN projects will help the whole community. Beyond making crypto safer, this change will have a positive impact on the broader crypto industry.
