[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9173 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9173
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 8, 2026
Mr. Kelly of Pennsylvania introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Charitable
Deductions for Digital Asset Donations Act''.
(b) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; etc.
Sec. 2. Charitable contributions of widely traded digital assets.
Sec. 3. Definitions.
Sec. 4. Rules of construction.
SEC. 2. CHARITABLE CONTRIBUTIONS OF WIDELY TRADED DIGITAL ASSETS.
(a) Exception From Appraisal Requirement.--Section
170(f)(11)(A)(ii)(I) is amended by inserting ``widely traded digital
assets (except as the Secretary determines appropriate to prevent abuse
of this section),'' after ``publicly traded securities (as defined in
section 6050L(a)(2)(B)),''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2026.
SEC. 3. DEFINITIONS.
Section 7701 is amended--
(1) by redesignating subsection (p) as subsection (q), and
(2) by inserting after subsection (o) the following new
subsection:
``(p) Definitions Related to Digital Assets.--For purposes of this
title--
``(1) Digital asset.--The term `digital asset' means,
except as otherwise provided by the Secretary, any digital
representation of value which is recorded on a
cryptographically secured distributed ledger or any similar
technology as specified by the Secretary.
``(2) Traded digital asset.--The term `traded digital
asset' means, except as otherwise provided by the Secretary to
prevent abuse, any digital asset if--
``(A) such asset is fungible,
``(B) quotations of such asset are readily
available on an exchange (or, in the case of an
exchange that does not provide quotations, such
quotations are readily ascertainable), and
``(C) such asset is either--
``(i) not a tokenized digital asset, or
``(ii) a wrapped digital asset with respect
to which the reference digital asset is a
traded digital asset.
``(3) Widely traded digital asset.--
``(A) In general.--The term `widely traded digital
asset' means, with respect to any taxpayer for any
taxable year and except as otherwise provided by the
Secretary to prevent abuse, any traded digital asset
if--
``(i) quotations for such asset were
readily available on an exchange for the entire
calendar year which ends in or with the taxable
year preceding such taxable year,
``(ii) the market capitalization of such
asset exceeded $500,000,000 at substantially
all times during such calendar year, and
``(iii) not more than 10 percent of the
units of such asset were owned, directly or
indirectly, by the taxpayer or any person
described with respect to the taxpayer under
section 267(b) (applied without regard to
section 267(c)(3)) or section 707(b)(1) at any
time during such taxable year or such preceding
taxable year.
``(B) Special rule for wrapped digital assets.--In
the case of any wrapped digital asset, except as
otherwise provided by the Secretary to prevent abuse,
such asset shall be treated as a widely traded digital
asset if, and only if, the reference digital asset with
respect to such wrapped digital asset is a widely
traded digital asset.
``(C) Authority to ensure reliable price
discovery.--For purposes of subparagraphs (A) and (B),
the term `prevent abuse' includes the exclusion of
assets that lack reliable price discovery or that the
Secretary determines are at risk of price manipulation.
``(D) Authority to adjust requirements.--The
Secretary may, by regulation, provide requirements that
apply in lieu of one or more of the requirements of
clauses (i) through (iii) of subparagraph (A) if the
Secretary determines that due to changes in market
conditions (including by reason of the enactment of
Federal digital asset market structure legislation)
that such alternative requirements would more
effectively or efficiently identify traded digital
assets for which there is consistent and reliable price
discovery.
``(E) Inflation adjustment.--In the case of any
calendar year after 2027, the $500,000,000 amount in
subparagraph (A)(ii) shall be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year, determined by substituting
`calendar year 2026' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence
which is not a multiple of $100,000 shall be rounded to
the nearest multiple of $100,000.
``(4) Tokenized digital asset.--The term `tokenized digital
asset' means any digital asset (other than any qualified U.S.
dollar stablecoin) if more than an insignificant portion of the
value of such digital asset is related to anything other than
the operation of the cryptographically secured distributed
ledger on which such digital asset is recorded.
``(5) Wrapped digital asset.--The term `wrapped digital
asset' means, except as otherwise provided by the Secretary to
prevent abuse, any digital asset if such asset--
``(A) is redeemable on demand, on a one-for-one
basis, for another digital asset, and
``(B) is recorded on a cryptographically secured
distributed ledger other than the cryptographically
secured distributed ledger on which the digital asset
referred to in subparagraph (A) is recorded.
``(6) Reference digital asset.--
``(A) In general.--The term `reference digital
asset' means, with respect to any wrapped digital
asset, the digital asset referred to in paragraph
(5)(A).
``(B) Special rule for rewrappings.--If, but for
this subparagraph, the reference digital asset with
respect to any wrapped digital asset would be a wrapped
digital asset (hereafter referred to in this paragraph
as the lower-tier wrapped digital asset)--
``(i) subparagraph (A) shall be applied
with respect to such lower-tier wrapped digital
asset, and
``(ii) the reference digital asset with
respect to such lower-tier wrapped digital
asset shall be treated as the reference digital
asset of such wrapped digital asset.
``(C) Multiple wrappings.--If, after the
application of subparagraph (B), the reference digital
asset with respect to the lower-tier wrapped digital
asset is a wrapped digital asset, such subparagraph
shall be reapplied by treating such lower-tier wrapped
digital asset as the wrapped digital asset.
``(7) Stablecoin.--
``(A) Qualified u.s. dollar stablecoin.--The term
`qualified U.S. dollar stablecoin' means any U.S.
dollar stablecoin which is issued by--
``(i) a permitted payment stablecoin issuer
(as defined in section 2(23) of the GENIUS Act,
as in effect on the date of the enactment of
this paragraph), or
``(ii) a foreign payment stablecoin issuer
(as defined in section 2(12) of the GENIUS Act,
as so in effect) which is permitted under such
Act (as so in effect) to offer, sell, or
otherwise make available such U.S. dollar
stablecoin in the United States.
``(B) U.S. dollar stablecoin.--The term `U.S.
dollar stablecoin' means a payment stablecoin as
defined in section 2(22) of the GENIUS Act (as in
effect on the date of the enactment of this paragraph)
applied by substituting `dollars' for `monetary value'
each place it appears in such section.
``(C) Publication of list.--The Secretary shall, to
the extent feasible, regularly publish a list of
qualified U.S. dollar stablecoins.
``(D) Limited authority to treat stablecoins as
money.--The Secretary may issue such regulations or
other guidance as may be necessary or appropriate to
(except as otherwise expressly provided in this
title)--
``(i) treat qualified U.S. dollar
stablecoins as dollars, and
``(ii) treat other stablecoins as currency
if such treatment would increase Federal
revenues.''.
SEC. 4. RULES OF CONSTRUCTION.
(a) No Inference With Respect to Application of Other Provisions of
Law.--Except as otherwise expressly provided by this Act (or an
amendment made by this Act) with respect to the application of one or
more provisions of the Internal Revenue Code of 1986, nothing in this
Act (or any amendment made by this Act) shall be construed to create an
inference that a digital asset does or does not constitute a security,
a commodity, debt, equity, stock, a partnership interest, or an
interest in a trust, for purposes of any provision of law.
(b) No Inference With Respect to Prior Periods.--No provision of
this Act (or any amendment made by this Act) shall be construed to
create any inference with respect to the proper application of any
provision of the Internal Revenue Code of 1986 with respect to any
period before the period to which such provision or amendment applies.
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