Member Company, Gray Reed Advises MegPrime on Landmark SEC No-Action Letter
Gray Reed congratulates its client MegPrime Holding LLC on a historic milestone in U.S. digital assets and fintech. The MP Token, a consumer focused digital currency developed by MegPrime, is the first universal payments token to receive a no action letter from the staff of the U.S. Securities and Exchange Commission.
The milestone was achieved with guidance from Gray Reed Partners Chris Davis and Joshua Smeltzer, Co-Chairs of the firm’s Blockchain and Digital Asset Practice Group, working with former SEC staff at Gibson Dunn. The no action letter confirms the MP Token is not an investment contract or other security, providing MegPrime critical regulatory clarity to launch its token and platform.
Developed with Megatel Homes LLC, one of the largest privately held homebuilders in the United States, MegPrime is designed to address the housing affordability crisis. Built around the MP Token, the platform turns everyday spending into tangible benefits by connecting real estate, personal finance and blockchain technology.
Key features:
· BillPay Rewards: Earn up to 20 percent back in MP Token rewards when paying rent or mortgage in the app. Rewards can be used for purchases or converted to U.S. dollars.
· RentForward: Receive up to $25,000, equal to 12 months of past rent, toward a future home purchase, including down payment assistance.
· MegaLow Rate Program: Access mortgage rates up to 2 percent below market when paying with MP Tokens in the app, driving monthly and long-term savings.
“Securing the SEC staff’s no action letter was only possible because of the strategic counsel from Gray Reed Partners Chris Davis and Joshua Smeltzer and their leadership in helping assemble our broader legal and industry team,” said Zach Ipour, cofounder of Megatel Homes and MegPrime. “Their guidance helped us design a consumer use token framework that prioritizes compliance and real world utility.”
MegPrime’s token structure, minting process and compliance framework were developed to meet the highest regulatory standards. The SEC’s no action letter is the cornerstone of this compliance framework and affirms the MP Token’s status as a consumer token that sets a benchmark for responsible digital asset innovation.
Commenting on MegPrime’s commitment to compliance, Gray Reed Partner Chris Davis said, “From the first time Zach and his team approached us about this project, he made clear that the company would only pursue it if they could meet the highest compliance standards. We believe MegPrime is doing exactly that and are grateful for the trust placed in Gray Reed to advise on this exciting cutting-edge project.”
The MP Token will be available during MegPrime’s upcoming Token Generation Event, then through the MegPrime app and select third party exchanges.
For more information, visit MegPrimePay.com. The SEC’s no action letter is available here, and MegPrime’s no action request is available here.
About Gray Reed
Gray Reed is a full-service Texas law firm with a comprehensive range of litigation and transactional practices. Gray Reed’s 165 attorneys focus on understanding our clients’ businesses and industries, supporting companies and high-net-worth individuals with sophisticated legal needs. Through our subsidiary, Gray Reed Advisory Services, we extend our support with expert consultants who provide strategic business solutions tailored to each client’s objectives. Learn more at www.grayreed.com and www.grayreedadvisory.com.
