SEC dismisses securities violation case against Helium
The U.S. Securities and Exchange Commission (SEC) has rejected a lawsuit against Helium, a blockchain-powered network for the Internet of Things (IoT). The lawsuit alleged that Heliums native token, HNT, was a security and required registration with the SEC.
However, the SECs dismissal of the lawsuit is a positive outcome for Helium and the crypto community. The SEC stated that HNT does not qualify as a security under U.S. federal securities laws, citing the tokens utility and functionality within the Helium network.
This decision sets a precedent for other blockchain projects and provides clarity on the regulatory status of cryptocurrencies in the U.S. It highlights the importance of considering a tokens use case and function when determining its classification under securities laws.
Despite the dismissal of the lawsuit, regulatory uncertainty remains a challenge for the crypto industry. Projects must continue to work closely with legal experts to ensure compliance with evolving regulations and avoid potential enforcement actions in the future.
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Text source: Crypto Breaking News
