What does Preamble of Charitable Deductions for Digital Asset Donations Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would except digital assets from the appraisal requirement applicable to certain charitable contributions. The bill is referred to the Committee on Ways and Means.

What does SHORT TITLE; ETC. of Charitable Deductions for Digital Asset Donations Act do?

This Act is formally titled the Charitable Deductions for Digital Asset Donations Act. The Act establishes a short title for reference. Amendments or repeals within the Act refer to sections or provisions of the Internal Revenue Code of 1986 unless otherwise specified.

What does CHARITABLE CONTRIBUTIONS OF WIDELY TRADED DIGITAL ASSETS. of Charitable Deductions for Digital Asset Donations Act do?

This section amends Section 170(f)(11)(A)(ii)(I) of the Internal Revenue Code. The amendment adds 'widely traded digital assets' to the list of assets exempt from appraisal requirements for charitable contributions. The Secretary has the authority to determine exceptions to this exemption to prevent abuse. The amendment applies to taxable years beginning after December 31, 2026.

What does DEFINITIONS. of Charitable Deductions for Digital Asset Donations Act do?

This section amends Section 7701 of the Internal Revenue Code to define several terms related to digital assets. The term 'digital asset' is defined as any digital representation of value recorded on a distributed ledger, subject to the Secretary's discretion. A 'traded digital asset' is defined as a fungible digital asset with readily available quotations and not a tokenized digital asset, or a wrapped digital asset referencing another traded digital asset. A 'widely traded digital asset' requires quotations available throughout the year, a market capitalization exceeding $500,000,000, and limited ownership by any single taxpayer. The Secretary has the authority to adjust these requirements and exclude assets lacking reliable price discovery or at risk of manipulation. A 'tokenized digital asset' is one where a significant portion of its value is not tied to the distributed ledger itself, excluding qualified U.S. dollar stablecoins. A 'wrapped digital asset' is redeemable on a one-for-one basis for another digital asset and recorded on a different ledger. The $500,000,000 market capitalization threshold for widely traded digital assets will be adjusted for inflation after 2027. The term 'qualified U.S. dollar stablecoin' is defined based on the GENIUS Act, referencing permitted issuers. The Secretary may treat qualified U.S. dollar stablecoins as dollars and other stablecoins as currency if it increases federal revenues.

What does RULES OF CONSTRUCTION. of Charitable Deductions for Digital Asset Donations Act do?

This section establishes rules of construction for the Act. It states that nothing in the Act should be construed to create an inference about whether a digital asset is a security, commodity, or other financial instrument. The Act also clarifies that its provisions should not create inferences regarding the application of the Internal Revenue Code of 1986 to periods before the Act's effective date.

Back to bills

Charitable Deductions for Digital Asset Donations Act

Last updated: 6/8/2026 · Introduced: 6/8/2026

Author: Mike Kelly (R-PA)

TL;DR (AI)

This bill exempts charitable donations of 'widely traded digital assets' from appraisal requirements, aligning them with existing exemptions for other assets.
The bill establishes definitions for key terms related to digital assets, including 'digital asset,' 'traded digital asset,' 'widely traded digital asset,' 'tokenized digital asset,' and 'wrapped digital asset.'
The bill clarifies that its provisions should not be interpreted as determining whether a digital asset is a security, commodity, or other financial instrument.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title; etc., and 3 more.

5 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account