US housebuilder to launch crypto rewards after SEC ‘no-action’ letter

A prominent U.S. residential homebuilder, Prosperity Homes, announced Monday the launch of a revolutionary crypto loyalty program, marking a significant step toward integrating blockchain technology into the traditional housing market. The move comes after the company secured a highly anticipated ‘no-action’ letter from the Securities and Exchange Commission (SEC).

The program, slated for rollout in Q4, will reward customers who purchase new properties with a native utility token, the ‘HomeReward Token’ (HRT). Buyers completing a home sale will receive HRT equivalent to approximately 1.5% of the purchase price, which can then be redeemed for services such as home upgrades, landscaping packages, or maintenance fees offered through Prosperity Homes’ affiliated partners.

The regulatory clarity provided by the SEC is the key differentiator for this program. A ‘no-action’ letter indicates that the SEC staff will not recommend enforcement action against Prosperity Homes regarding the issuance of the HRT, based on the determination that the tokens, as structured, are not unregistered securities under the Howey Test.

Prosperity Homes CEO, Amelia Reed, stated in a press release that the letter provides a vital blueprint for how traditional industries can leverage blockchain technology responsibly. “This regulatory sign-off allows us to provide innovative, tangible rewards that retain customer loyalty and reduce long-term marketing costs, all while demonstrating adherence to regulatory requirements,” Reed noted.

Analysts suggest this regulatory success could open the floodgates for other major builders and traditional retail companies to experiment with tokenized loyalty systems, potentially accelerating the mainstream adoption of digital assets in consumer transactions.

Source: US housebuilder to launch crypto rewards after SEC ‘no-action’ letter