US homebuilder Megatel Homes is set to launch a crypto rewards platform after receiving a Securities and Exchange Commission “no-action” letter.
Megatel said on Thursday that the platform, dubbed MegPrime, would give users rewards for using “MP Tokens,” such as using them to pay their rent to earn back tokens that can be used for “everyday purchases” or converted to US dollars.
It came after the SEC allowed MegPrime to go ahead with its plans in its letter on Thursday, recommending no enforcement action so long as the platform strictly follows its outlined plan.
MegPrime said in a post on X that the company “operated in stealth-mode to meet regulatory requirements.”
MegPrime makes bold promises for renters
Aaron Ipour, co-founder of Megatel Homes and MegPrime, added that “as the housing market continues to grapple with unsustainable interest rates and price inflation, MegPrime provides a real financial lifeline to renters, homeowners, and aspiring homebuyers.”
Crypto cashback, while promoted as a new idea in housing, has already been offered through credit cards for several years.
The platform has made bold promises for renters, however, claiming that renters who use the token to pay rent may be “eligible to receive 100% of their past 12 months of rent, up to $25,000, toward a future home purchase.”
Recent data shows that around 32% of peope the US live in rental housing.
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The platform also claims homeowners may be able to access mortgage rates up to 2% below the market average, potentially saving “thousands of dollars.”
The average 30-year fixed-rate mortgage in the US currently stands at 6.06%, according to Freddie Mac.
The SEC’s support for the program comes as SEC chairman Paul Atkins continues to voice pro-crypto views. Earlier this week, SEC chair Paul Atkins said he’s “bullish” on the chances of US President Donald Trump signing the bill this year.
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