Crypto● Neutral
Trump's Crypto Divestiture Under Clarity Act Could Defer Taxes for Years
The forced sale of Trump's crypto businesses under the Clarity Act ethics provision could allow him to defer capital gains taxes indefinitely, sources said. The bill's vote now pushed to September.
Continue with
The ethics provision Democrats demanded to unlock the Clarity Act could hand President Donald Trump a years-long deferral on capital gains taxes, Bloomberg reported Thursday. The forced sale of his crypto-related businesses would let him defer federal taxes on the resulting gains for years, and possibly indefinitely, people familiar with the matter told Bloomberg.
The proposed addendum remains under negotiation between the White House and lawmakers and has not been made public. Trump reported more than $1.4 billion in crypto income for last year in a financial disclosure released in June. That includes roughly $636 million in memecoin royalties, about $594 million tied to World Liberty Financial, and close to $197 million from a stablecoin venture. Those figures make crypto the dominant source of his personal income.
The ethics fight has been the central obstacle to the bill for months. Trump had accepted language brokered by Senator Cynthia Lummis. Democrats and Republicans including Senators Thom Tillis and Ruben Gallego sent a counter-proposal to the White House in late July. Senate Democrats have separately demanded hearings into the president's crypto earnings. These disputes have fueled delays that have now pushed a Clarity vote to September.