Texas real estate company Megatel plans to launch a cryptocurrency reward token, receiving a "no-action" relief from the SEC

Texas private residential developer Megatel Homes announced plans to launch a cryptocurrency token called "MegPrime" for payments and rewards in the coming weeks. This decision has previously received a "no-action" letter from the U.S. Securities and Exchange Commission (SEC), meaning the regulatory agency will not take enforcement action regarding the project.

Megatel CEO Zach Ipour stated that MegPrime marks the company's first foray into the digital asset space, and the token will serve solely as a payment and rewards tool, rather than an investment product. Consumers will be able to use the token at regular merchants through digital wallets and payment cards, and earn rebates, discount gift cards, and points that can be used for housing-related benefits in token form.

Reports indicate that MegPrime does not grant holders any rights related to securities, such as voting rights or profit-sharing rights. Megatel believes that combining its real estate development and financing business with this model is expected to further integrate real estate activities with digital currency incentive mechanisms.