Crypto Giving Just Got a Lot Easier: What New U.S. Legislation Means for Philanthropy

A historic wave of crypto legislation just reshaped the landscape of digital assets in the U.S.—and opened up major new opportunities for charitable giving.

For the first time, federal lawmakers have passed a comprehensive framework to regulate stablecoins, clarify token oversight, and address privacy concerns with central bank digital currencies. Collectively known as “Crypto Week,” these laws bring long-awaited legitimacy to the digital asset space and are expected to ignite a new era of crypto-native philanthropy.

Here’s what it all means—especially for donors, nonprofits, and the future of donor-advised funds (DAFs).

A Quick Breakdown: The Three Landmark Bills

1. GENIUS Act

Signed into law by President Trump on July 18, 2025, the GENIUS Act creates the first federal oversight framework for stablecoins—cryptocurrencies that are pegged to the value of a fiat currency (like the U.S. dollar) or another asset to maintain price stability. Think of them as the "digital cash" of the crypto world.

Key provisions:

• Requires 100% reserves in cash or liquid assets, meaning stablecoin issuers must hold the full value of all circulating tokens in highly liquid and secure assets like U.S. dollars or Treasury bills to ensure redeemability at any time.
  
  
• Enforces monthly public disclosures and audits
  
  
• Introduces strict marketing and consumer protection rules
  
  
• Prioritizes customer claims in the event of bankruptcy
  

Why it matters: It elevates stablecoins to "cash-equivalent" status and eliminates lingering concerns about issuer solvency, particularly for nonprofits relying on predictable donation value.

2. CLARITY Act

Passed by the House and now under active review in the Senate, the CLARITY Act is one of the most consequential digital asset bills to date. It aims to bring long-overdue structure to an industry that, until now, has operated in a murky legal environment.

This legislation is a direct response to years of regulatory uncertainty and aggressive enforcement actions by the U.S. Securities and Exchange Commission (SEC), especially under Chair Gary Gensler. From 2021 to 2025, the SEC sued major crypto firms—including Ripple, Coinbase, Kraken, and Binance—alleging they offered or facilitated the sale of unregistered securities. These actions, taken without corresponding rulemaking, created significant confusion about how and when digital assets should be classified.

The industry and policymakers widely criticized this “regulation by enforcement” approach for its chilling effect on innovation. The Ripple case became a flashpoint: while the SEC insisted XRP was a security, Ripple—and over 75,000 XRP holders who submitted amicus briefs—argued that no clear guidance existed. The case underscored the need for clear, actionable rules.

The CLARITY Act aims to solve this by:

• Setting definitions and standards for when digital assets are treated as securities vs. commodities
  
  
• Shifting regulatory oversight of most digital assets to the Commodity Futures Trading Commission (CFTC)
  
  
• Introducing a “dual-track” or “asset-based” framework, so companies know in advance which regulator applies based on the function and structure of their token
  

Why it matters: For donors, nonprofits, and platforms like Givepact, the CLARITY Act is foundational. It gives builders confidence that they’re operating within a well-defined legal regime—and gives donors assurance that their contributions won’t be tied up in regulatory gray zones.

In short, this legislation represents a major step toward replacing fear and confusion with clear rules, accountability, and innovation-friendly oversight.

3. CBDC Anti-Surveillance State Act

This bill blocks the Federal Reserve from issuing a retail Central Bank Digital Currency (CBDC) without explicit authorization from Congress. The law reflects privacy concerns around government-issued digital currencies and reinforces support for private, decentralized financial tools.

Why it matters: For crypto donors who value financial privacy, this is a strong endorsement of decentralized, blockchain-based stablecoins over state-issued digital currencies.

Stablecoins Are Winning—And So Is Crypto Giving

Stablecoins have rapidly become the top donated asset in crypto philanthropy. In 2023, USDC alone accounted for 44% of all crypto donations, surpassing both Ethereum and Bitcoin.

The reason is simple: price stability and ease of transfer.

Even during bear markets, donors are willing to give in stablecoins—helping nonprofits avoid volatility and process donations faster. With the GENIUS Act now in place, this trend is accelerating. Stablecoins are no longer just convenient—they’re federally recognized and institutionally trusted.

What This Means for Donors and Nonprofits

1. Increased Confidence and Clarity

• Donors know they’re giving through compliant, secure vehicles
  
  
• Nonprofits can now promote crypto giving more boldly
  
  
• Stablecoins offer nonprofits a near-cash equivalent with faster settlement
  

2. Crypto DAFs Are Going Mainstream

With legal clarity and rising demand, donor-advised funds (DAFs) are ripe for crypto. At Givepact, our custodial DAFs allow donors to:

• Contribute crypto directly (including volatile assets or stablecoins)
  
  
• Receive an immediate tax deduction
  
  
• Grow assets tax-free
  
  
• Regrant to charities over time with complete flexibility
  

DAFs are no longer a Wall Street-only tool—they're now at the center of the Web 3 giving movement.

3. Tax Guidance Has Been Clear for Years

While legislation is evolving, one thing hasn’t changed: The IRS has been crystal clear about how crypto is taxed.

In Notice 2014-21, the IRS clarified that virtual currency is treated as property, not currency. That means:

• Selling, spending, or trading triggers capital gains or losses
• Donating appreciated crypto directly to a nonprofit avoids capital gains tax
• Donors may deduct the fair market value of the gift (if held >1 year)
  

In short, donating crypto isn’t just impactful—it’s one of the most tax-efficient ways to give.

The Bottom Line

These new laws represent a sea change for both digital assets and the charitable sector. We’re entering an era where:

• Crypto assets are finally getting federal legitimacy
  
• Stablecoins are seen as cash-like donation vehicles
• Donor-advised funds are becoming more accessible