- MegPrime is intended as a functional token for payments and rewards.
- Rewards may include rebates, discounted gift cards, and housing-related benefits.
- Megatel Homes will start issuing MegPrime tokens in the coming weeks.
Megatel Homes, a privately-owned Texas home construction company, has announced it got the green light from the SEC via a no-action letter, allowing it to launch a crypto-based rewards and payments program using a token called MegPrime.
A no-action letter is different from official asset approval. It means the SEC has signaled it won’t take action against the program as long as Megatel follows its own rules, which is a notable sign of regulatory flexibility in an otherwise strict environment.
As for MegPrime itself, it’s intended to be a functional token for payments and rewards, not an investment or stock-like security. Users earn rewards in MegPrime tokens for everyday spending, including rent and mortgage payments.
Additionally, tokens can be spent with merchants using a digital wallet and payment card, practically functioning as a crypto cashback or loyalty system. Rewards may include rebates (potentially reaching up to 20%), discounted gift cards, and housing-related benefits.
It was reported that renters who use MegPrime to pay rent could be eligible to apply up to $25,000 of past rent toward a future home purchase. Also, tokens can be converted to US dollars for flexible use.
The company will start issuing MegPrime tokens in the coming weeks.
Related: SEC Chair Calls This a Pivotal Week for U.S. Crypto Regulation
Why This Matters
Megatel’s MegPrime project is an early example of a mainstream company combining home buying services with digital tokens for regular customers, not just for investment products.
It builds on an earlier 2019 program where Megatel credited renters with an amount equivalent to one year’s rent as equity toward a home purchase. That loyalty benefit is now being updated and improved using blockchain.
By using crypto rewards for home-related actions, Megatel is targeting everyday spending and saving habits. A successful outcome could offer a template for other non-crypto companies wanting to add digital tokens to their customer loyalty programs.
Also, the SEC’s decision to issue a no-action letter shows a more flexible regulatory approach, making it safer for non-crypto companies to test out blockchain and crypto projects without immediate fear of being penalized.
Related: Ripple Urges SEC to Abandon Decentralization as a Legal Test
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