Charitable Deductions for Digital Asset Donations Act
Sponsored By: Representative Kelly, Mike [R-PA-16]
Introduced
Summary
Makes it easier to claim charitable deductions for widely traded digital assets by removing the usual appraisal requirement. It would also add a detailed legal framework for which digital assets count as "widely traded" or otherwise qualify.
Show full summary
- Donors: Individuals who give widely traded digital assets would not need a formal appraisal to claim a charitable deduction. The appraisal exception would apply for taxable years beginning after December 31, 2026.
- Tax administrators: The Secretary could set protections to prevent abuse and could adjust the qualifying rules if market conditions or federal digital-asset law change.
- Market definitions and rules: The bill would add new definitions for digital asset, traded and widely traded digital asset, tokenized and wrapped assets, reference assets, and stablecoins. A widely traded test would require market quotations, a market capitalization threshold of $500 million, and ownership limits of no more than 10 percent by the donor or related persons, with an inflation adjustment after 2027.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Easier tax deductions for crypto donations
This bill would let you claim a charitable tax deduction for donations of certain "widely traded digital assets" without a written appraisal. The appraisal exception would apply for tax years beginning after December 31, 2026. To qualify, the asset would need readily available quotations for the prior calendar year, a market capitalization above $500,000,000 for that year, and no more than 10% of the units owned by you or related persons in the current or prior year. The Treasury Secretary would be able to exclude assets that lack reliable price discovery or are at risk of manipulation and could publish lists and rules for stablecoins.
Sponsors & CoSponsors
Sponsor
Kelly, Mike [R-PA-16]
PA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov