The firm maintains that it is absurd to demand an assessment of donations made in dollar-pegged stablecoins, for instance, USDT or USDC.
On Friday, ‘The Giving Rock,’ a crypto fundraising platform, sent a letter to Senators Mike Crapo (R-ID) and Ron Wyden (D-OR), pushing them to remove evaluation requirements for crypto donations.
The firm, which aids nonprofits to accept crypto donations, claimed the present requirements are a problem for donors. In particular, donations surpassing $5,000 evoke the need for donors to engage competent appraisers to offer written consent for the transaction for accounting reasons.
Giving Rock Decries Inadequate Awareness of Paperwork Required in Crypto Donation
The company wrote that, in most cases, donors lack knowledge of or are confused about the requirements. Besides, getting competent appraisers with knowledge about digital assets may be expensive and complicated. Charges for these services may vary from 4% to 40% of the donation and depend on the appraiser.
These appraisal services also affect stablecoins such as USD Coin (USDC) and Tether (USDT), which are mainly designed to be interchangeable 1:1 for the U.S. dollar. The letter asserts that owing to the assets’ self-evident values, their appraisals do not offer value to the charity, United States Treasury, or donor.
The Giving Block’s General Counsel, David Johnson, claimed they speak with charities and donors daily and hear concerns and confusion regarding achieving the requirements. Besides, he claimed they aid donors in acquiring appraisals to meet their needs. However, as the letter shows, a public policy validation for the requirement is nonexistent.
Senators Pursue Best Solution to Crypto Assets Taxation Issues
The letter responds to a July request by the Senate Finance Committee seeking opinions from industry professionals concerning the best means to suppress uncertainties and address the ‘new regulatory problems’ linked to crypto assets taxation.
Its suggestions reiterate last month’s recommendations by Coin Center, a crypto policy think tank, which proposed eliminating appraisal requirements of crypto donations. Instead, it asserted that crypto is the same as ‘readily valued property’ such as stocks and cash with vast exchange price data availability.
According to Johnson, The Giving Block and Coin Center share similar opinions regarding this matter, and they anticipate additional nonprofit and crypto groups to support the change. Crypto transactions are international, peer-to-peer, and almost impossible to reverse. These reasons have resulted in advocates claiming they can support political and humanitarian causes following the closure of traditional financial rails. Following the call of Ukraine’s Vice PM In 2022, the crypto community united to send millions of dollars to the nation directly.
Johnson stated that it is simple, quick, and verifiable. When integrated with the transfer of wealth, where young tech-intelligent donors have much wealth in crypto, it becomes evident that the community is the future of philanthropy.