Kelly introduces Charitable Deductions for Digital Asset Donations Act - Congressman Mike Kelly | (.gov)
The Charitable Deductions for Digital Asset Donations Act, introduced by Congressman Mike Kelly, would allow taxpayers to deduct the fair market value of donated digital assets without recognizing capital gains, aligning treatment with that of securities. This change simplifies tax reporting for donors and may increase charitable giving in crypto.
Aforeworn detected this change in the Crypto & DeFi Tax Reporting space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Low urgency. Crypto exchanges/brokers, accounting firms, high-volume traders, and charitable organizations accepting digital assets. should confirm how it applies to their specific situation before acting. There is a time constraint attached: No immediate deadline; act when bill advances (e.g., committee markup or floor vote).. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Crypto & DeFi Tax Reporting continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
Proposed legislation to allow charitable deductions for digital asset donations at fair market value, eliminating capital gains tax on donated assets.
Who it affects
Crypto exchanges/brokers, accounting firms, high-volume traders, and charitable organizations accepting digital assets.
What you must do
Monitor legislative progress; update tax reporting procedures and client guidance to reflect potential new deduction rules.
Deadline
No immediate deadline; act when bill advances (e.g., committee markup or floor vote).
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