TLDR
- A bipartisan ethics proposal would require Trump to divest from crypto businesses as part of the CLARITY Act
- The deal could allow Trump to defer capital gains taxes on those sales, potentially saving him millions
- Trump earned $1.4 billion from crypto ventures in 2025, including $635 million from TRUMP memecoin royalties
- The Senate must pass the bill before a month-long recess beginning Friday, requiring 60 votes
- Several senators from both parties have raised concerns, leaving the bill’s passage uncertain
Senators Thom Tillis and Ruben Gallego sent ethics language to President Trump last week that would require him to sell off his crypto-related businesses. The provision is now tied directly to passing the CLARITY Act, the first comprehensive federal crypto regulation in US history.
Could The CLARITY Act Save Trump Millions In Taxes?
New ethics language tied to the CLARITY Act could allow US President Donald Trump to defer millions in federal taxes, Bloomberg reported.
The proposal would require Trump to divest from crypto related businesses. Bloomberg… pic.twitter.com/yW0wrvyAtI
— BSCN (@BSCNews) August 7, 2026
Under the proposal, Trump could defer paying federal capital gains taxes on any required sales. Bloomberg reports those savings could be worth millions of dollars, and in some cases the taxes might never have to be paid at all.
Democrats have pushed for ethics rules around Trump’s crypto holdings for months. His financial ties to the industry have been a major sticking point in passing broader crypto market structure legislation.
The latest version of the ethics language also gives state attorneys general the power to enforce the rules. Earlier drafts gave that authority exclusively to the Justice Department and blocked states from acting, which had drawn criticism from some senators.
Trump’s 2025 financial disclosure showed he earned $1.4 billion from crypto ventures last year. The largest share, around $635 million, came from royalties tied to the TRUMP memecoin through a licensing deal with Celebration Coins.
His family’s DeFi platform, World Liberty Financial, generated about $588 million from token sales, making it the second-biggest earner. Trump also earned $197 million from the sale of an equity interest in a stablecoin venture.
An entity affiliated with Trump and certain family members holds approximately 38% of the equity interests in World Liberty’s parent company, according to disclosures on the platform’s website.
Senate Timeline Is Tight
The Senate is scheduled to leave for a month-long recess on Friday. After that, lawmakers are expected to shift focus toward November elections, leaving little room to revisit the bill.
As of Thursday afternoon, Senate Majority Leader John Thune had not yet filed a cloture vote, which is a required procedural step before a full Senate vote can take place.
The bill needs 60 votes to pass, meaning it requires Democratic support. But Republican support has also been shaky.
Senator Josh Hawley has said he won’t vote for the bill until changes are made around deposit flight concerns. Senators Susan Collins and Lisa Murkowski have also raised issues with other parts of the legislation.
Solana Policy Institute President Kristin Smith said senators may stay in Washington past Friday to work through outstanding issues on ethics and DeFi.
“There is discussion about whether they could stay over the weekend to try to get some of these issues done,” Smith said Thursday.
If the Senate passes the bill, it would still need to return to the House for another vote before going to Trump for his signature.
Be the first to comment