Charitable Deductions for Digital Asset Donations Act

This bill amends the Internal Revenue Code to exempt certain digital asset donations from the appraisal requirement for charitable contributions, effective for taxable years starting after December 31, 2026.

Sec. 2, Charitable contributions of widely traded digital assets: This section amends the Internal Revenue Code to add "widely traded digital assets" to the list of items (like publicly traded securities) that are excepted from the appraisal requirement for charitable contributions, unless the Secretary determines otherwise to prevent abuse.

Sec. 3, Definitions: This section adds new definitions to the Internal Revenue Code. It defines "digital asset" as a digital representation of value on a cryptographically secured distributed ledger. A "traded digital asset" is a fungible digital asset with readily available exchange quotations, excluding tokenized assets or including wrapped assets if the reference asset is traded. A "widely traded digital asset" is a traded digital asset with exchange quotations available for the prior full calendar year, a market capitalization over $500,000,000 (adjusted for inflation after 2027), and not more than 10% owned by the taxpayer or related parties. It also defines "tokenized digital asset," "wrapped digital asset," "reference digital asset," and "stablecoin" (including qualified U.S. dollar stablecoins), with authority for the Secretary to adjust requirements and prevent abuse.

Sec. 4, Rules of construction: This section states that nothing in the Act should be interpreted to imply whether a digital asset is a security, commodity, or other financial instrument under any law, or to affect the application of tax law for periods before the Act's effective date.