Sponsor
Mike Kelly
Representative · R-PA
Representative · R-PA
The bill reduces compliance costs and adds clearer tax categories for many widely traded crypto assets and stablecoins—making donations and tax treatment more predictable for many—while increasing risks of valuation abuse, creating new tax/admin burdens for stablecoins, and leaving some regulatory and transitional uncertainties unaddressed.
Donors of widely traded digital assets (and the nonprofits that receive them) will no longer need a costly qualified appraisal for crypto charitable gifts starting in taxable years after 2026, lowering compliance costs and reducing barriers to crypto donations while easing IRS appraisal enforcement burdens.
Taxpayers, financial firms, and crypto market participants gain clearer statutory definitions and predictable rules (including market-cap/ownership tests) for 'widely traded' digital assets and a required published list of qualified U.S. dollar stablecoins, improving tax classification clarity and regulatory visibility.
Taxpayers and financial firms get certainty that the Act is not retroactive and cannot be used to treat specified digital assets as securities or other instruments solely by implication, reducing the risk of unexpected retroactive tax changes or accidental expansion of securities-law exposure.
Individual taxpayers and nonprofits face a higher risk that donated crypto will be overvalued without required appraisals, enabling inflated charitable deductions, increasing audit exposure, and creating potential tax revenue loss.
Holders, issuers, and other taxpayers may incur new tax consequences and administrative burdens because the Act treats qualified U.S. dollar stablecoins as U.S. dollars (and treats other stablecoins as currency), changing how transactions are taxed and recorded.
Taxpayers, developers, and mid-size crypto projects face ongoing uncertainty because the Secretary has broad exclusion/qualification authority and the $500 million market-cap / ownership thresholds may disadvantage mid-size projects and force taxpayers to track changing status across years.
Based on analysis of 4 sections of legislative text.
Creates an appraisal exception for donations of qualifying widely traded digital assets and adds statutory digital-asset definitions to the tax code, effective for tax years starting after 12/31/2026.
Official title: To amend the Internal Revenue Code of 1986 to except digital assets from the appraisal requirement applicable to certain charitable contributions, and for other purposes.
Introduced June 8, 2026 by Mike Kelly · Last progress June 8, 2026
Creates a new tax-code exception that lets certain donations of "widely traded digital assets" to charities avoid the usual appraisal requirement, and adds a set of statutory definitions for digital assets (including traded/widely traded/tokenized/wrapped assets and several kinds of stablecoins) to the Internal Revenue Code. The appraisal exception applies to contributions made in taxable years beginning after December 31, 2026. The bill also instructs the Treasury Secretary to publish a list of qualified U.S. dollar stablecoins and limits how the Act should be interpreted with respect to whether a digital asset is a security, commodity, or other legal instrument.