H.R. 9173

[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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