Crypto▼ Bearish
Trump Crypto Divestment Eyed in CLARITY Act Ethics Talks
Trump may be forced to sell crypto holdings under CLARITY Act ethics provisions, but a tax break could soften the blow. Final terms are still being negotiated.
Continue with
President Donald Trump could be required to sell some of his crypto holdings and business interests as lawmakers finalize ethics provisions for the CLARITY Act, according to reports. The proposed language, not yet public, could force the president to divest from cryptocurrency-related ventures, a move that would carry significant tax consequences. Sales of appreciated digital assets are generally subject to capital gains taxes.
The emerging agreement might also hand Trump a tax benefit. Provisions under consideration could allow him to avoid capital gains taxes on certain crypto investments, Bloomberg reported. Final details remain under negotiation and have not been officially published.
The White House and senators are discussing the ethics language as part of broader talks over the CLARITY Act, the market structure bill designed to set clearer rules for digital assets and define federal agencies' regulatory responsibilities. Ethics requirements have become a flashpoint. Senate Democrats have pushed for stricter restrictions to curb conflicts of interest involving officials with financial ties to crypto companies.