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**Title 1: The Giving Block Urges Senators to Eliminate Appraisal Requirements for Crypto Donations**
**Title 2: Overly Burdensome Appraisal Requirements Hindering Crypto Donations, Says The Giving Block**
The crypto fundraising platform, The Giving Block, has recently called upon Senators Ron Wyden and Mike Crapo to eliminate appraisal requirements on crypto donations. In a letter addressed to the senators, The Giving Block argued that these requirements create unnecessary burdens for donors, making it challenging and costly to fulfill them. Donations exceeding $5,000 in value currently require donors to hire a qualified appraiser to provide written approval of the transaction for accounting purposes.
According to The Giving Block, many donors are unaware of these requirements or confused about them. Additionally, finding appraisers who are familiar with digital assets can be a difficult and expensive task. The charges for such services can range from 4% to 40% of the donation itself, depending on the appraiser. This imposes an additional financial burden on donors and discourages them from making crypto donations.
Even stablecoins like Tether (USDT) and USD Coin (USDC), which are designed to be equivalent to the value of US dollars, require appraisal services. The Giving Block argues that appraising these stablecoins does not provide any value to the donor, charity, or the U.S. Treasury, as their values are self-evident.
David Johnson, the General Counsel for The Giving Block, highlighted the confusion and concern expressed by donors and charities regarding these requirements. While The Giving Block assists donors in obtaining appraisals to meet the current requirements, they believe there is no public policy justification for such appraisal requirements in the first place. Johnson mentioned that The Giving Block is aligned with Coin Center, a crypto policy think tank, which also advocates for the elimination of appraisal requirements on crypto donations.
The letter from The Giving Block comes in response to a request from the Senate Finance Committee, which sought input from industry experts on how to address uncertainties and resolve regulatory issues related to the taxation of crypto assets. Coin Center also recommended scrapping the appraisal requirements and emphasized that crypto assets are similar to readily valued property such as cash and stocks, for which exchange price data is widely available.
Crypto transactions provide a fast, easy, and verifiable way to support humanitarian and political causes, especially in circumstances where traditional financial systems may be inaccessible. In 2022, the crypto community came together to directly contribute hundreds of millions of dollars worth of crypto to Ukraine at the nation’s Vice PM’s call. Johnson believes that with the increasing wealth held by young, tech-savvy potential donors, much of which is in crypto, this community represents the future of philanthropy.
The Giving Block’s proposal to eliminate appraisal requirements for crypto donations aims to facilitate and encourage greater participation of individuals and organizations in supporting charitable causes through cryptocurrencies. By removing these burdensome requirements, more individuals may be inclined to donate their crypto assets, leading to a positive impact on the nonprofit sector and the communities they serve.