What This Bill Does
The Charitable Deductions for Digital Asset Donations Act would change IRS rules so certain donations of widely traded digital assets no longer need a qualified appraisal to claim a charitable deduction. It would apply to taxable years beginning after December 31, 2026. The bill also creates new tax-code definitions for digital assets, traded digital assets, widely traded digital assets, wrapped digital assets, tokenized digital assets, and stablecoins. In practice, it is aimed at donors, charities, and tax professionals dealing with crypto and similar assets.
- Creates an appraisal exception for “widely traded digital assets” in section 170(f)(11)(A)(ii)(I).
- Applies to taxable years beginning after December 31, 2026.
- Defines a “widely traded digital asset” using a $500,000,000 market-cap threshold.
- Lets Treasury exclude assets that lack reliable price discovery or are at risk of manipulation.
- Adds definitions for tokenized digital assets, wrapped digital assets, and qualified U.S. dollar stablecoins.
Who This Bill Affects
For a person who donates cryptocurrency or other digital assets to charity, this bill could reduce paperwork and transaction costs if the asset qualifies as a “widely traded digital asset.” Instead of needing a qualified appraisal for those gifts, the donor would rely on the bill’s market-based definition, including the $500,000,000 market-cap threshold and the prior-year quotation rules. If you do not donate digital assets, the bill would have little direct effect on you.
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- Crypto donors and high-net-worth taxpayers They would have a simpler path to claim charitable deductions for qualifying digital asset gifts because the bill removes the appraisal requirement for widely traded assets. That lowers compliance costs and may make it easier to donate appreciated crypto directly instead of selling first.
- Charities that accept digital assets Organizations that receive crypto donations could see fewer delays and lower administrative friction when donors contribute qualifying assets. Easier tax treatment may encourage more direct gifts of digital assets to nonprofits.
- Tax practitioners and compliance firms Clear statutory definitions for traded, widely traded, wrapped, and tokenized digital assets could make reporting and deduction analysis more predictable. The bill also gives Treasury authority to issue regulations, which may help standardize treatment over time.
- Tax administrators concerned about abuse They may worry that exempting digital assets from appraisal requirements could create opportunities to overstate values or exploit thinly traded markets. The bill tries to address this with anti-abuse authority, but critics may still see enforcement as difficult.
- Policymakers focused on valuation integrity Some may argue that digital assets are more volatile and more susceptible to manipulation than traditional publicly traded securities. They could prefer keeping appraisal safeguards in place rather than creating a new exception.
- Smaller-token investors and issuers Because the bill’s definition requires a $500,000,000 market cap and prior-year quotation availability, many digital assets will not qualify. Those holders would not get the same deduction simplification, which may be seen as favoring large, established assets.
Key Implications
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““except digital assets from the appraisal requirement””
This is the core tax change. For qualifying donations, taxpayers would not need to pay for or obtain a qualified appraisal just to support the charitable deduction.
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““widely traded digital assets (except as the Secretary determines appropriate to prevent abuse)””
Treasury keeps discretion to block abusive cases. That means the benefit is not automatic for every crypto asset that looks liquid on paper.
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““market capitalization of such asset exceeded $500,000,000””
Only large digital assets can qualify as “widely traded” under the bill. Smaller tokens would generally remain outside the new appraisal exception.
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““apply to taxable years beginning after December 31, 2026””
The change is prospective, not immediate. Donors would need to wait until the first taxable year starting after that date for the new rule to matter.
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““regularly publish a list of qualified U.S. dollar stablecoins””
The bill contemplates a Treasury-published list for stablecoins, which could help taxpayers and charities identify which assets fit the statute’s definitions.
Latest Status
June 8, 2026
Referred to the House Committee on Ways and Means.
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Ask AI about this billData sourced from api.congress.gov.