Charitable Deductions for Digital Asset Donations Act

The Charitable Deductions for Digital Asset Donations Act allows taxpayers to deduct the fair market value of widely traded digital assets when donated to qualified charities, removing the current requirement to obtain a formal appraisal for these contributions. To qualify, a digital asset must be fungible, have readily available market quotations, a market capitalization exceeding $500 million, and not be owned by more than 10% of the taxpayer or related parties. The bill also establishes specific definitions for wrapped and tokenized assets while giving the IRS authority to exclude assets lacking reliable price discovery or at risk of manipulation. These changes will take effect for taxable years beginning after December 31, 2026, with the $500 million threshold subject to inflation adjustments in subsequent years.