Crypto Fundraising Platform Urges Senators to Eliminate Appraisal Requirements for Crypto Donations
Crypto fundraising platform, The Giving Block, has sent a letter to Senators Ron Wyden and Mike Crapo, urging them to eliminate the appraisal requirements on crypto donations. The current requirements make it burdensome for donors to contribute to nonprofits using cryptocurrencies. Donations exceeding $5,000 in value require donors to hire a qualified appraiser to provide written approval of the transaction for accounting purposes. The Giving Block argues that finding qualified appraisers familiar with digital assets can be difficult and costly, with charges ranging from 4% to 40% of the donation itself. The platform believes that appraising stablecoins like Tether and USD Coin provides no value to the donor, charity, or the U.S. Treasury. The letter is a response to the Senate Finance Committee’s request for input on how to address the regulatory issues surrounding the taxation of crypto assets.
Hot Take
The Giving Block’s call to eliminate the appraisal requirements on crypto donations highlights the challenges faced by donors and nonprofits in the crypto space. With the increasing popularity of cryptocurrencies and their potential for supporting humanitarian and political causes, it is crucial to remove unnecessary barriers that hinder participation. By streamlining the donation process and reducing costs associated with appraisals, more individuals and organizations can contribute to nonprofits using digital assets. This move aligns with the growing trend of crypto becoming a significant player in philanthropy. As the crypto community continues to accumulate wealth and embrace charitable giving, it is essential to create an environment that facilitates and encourages these contributions.
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