SEC Takes Legal Action Against Nova Labs Over Crypto Securities
SEC sues Nova Labs for selling unregistered securities through Helium Network devices and data programs
Highlights:
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SEC sues Nova Labs for selling unregistered securities through Helium Network devices and programs.
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SEC accuses Nova Labs of misleading investors about partnerships with major companies like Lime and Salesforce.
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New SEC leadership may reconsider or drop some crypto enforcement cases in 2025.

The SEC has filed a lawsuit against Nova Labs, the firm behind the Helium Network. This move comes just days before Gary Gensler steps down as SEC chair. The SEC accuses the company of selling unregistered investment products, including mining devices and a program that allowed users to trade personal data for crypto.
SEC Claims Unregistered Securities Sales
On January 17, the SEC revealed its lawsuit against Nova Labs. The agency alleges that the company sold unregistered securities through two offerings. First, there are the “Hotspots,” devices that mine the Helium (HNT) cryptocurrency.
Then there’s the “Discovery Mapping” program, where users could exchange their private data for crypto. The SEC argues these offerings are investment products that should have been registered.
This lawsuit is part of a broader trend under Gensler’s leadership, where the SEC has targeted crypto firms for violating securities laws. Despite some losses, the SEC remains active in challenging the crypto space.
SEC's New Leadership Could Change Enforcement Strategy
With Gensler stepping down, there may be changes in the SEC’s approach to crypto regulation. A recent Reuters report suggests the SEC could reconsider or even drop some crypto cases in 2025.
If this happens, the lawsuit against Nova Labs might be impacted, especially if it revolves around securities law violations rather than fraud. If the SEC softens its stance, crypto firms may see relief.
However, cases involving fraud are expected to continue. This lawsuit highlights the ongoing struggle over how the U.S. will regulate cryptocurrency.
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