A bipartisan ethics proposal aimed at clearing the path for the CLARITY Act in the US Senate could deliver a substantial tax windfall to President Donald Trump, according to a Bloomberg report published Thursday. The addendum, which has not been publicly released, would reportedly require the president to divest from his crypto-related business interests while simultaneously allowing him to defer capital gains taxes on those forced sales — potentially saving him millions of dollars.
Ethics addendum stirs new controversy
The ethics provision was drafted to address long-standing Democratic concerns over conflicts of interest posed by Trump’s extensive crypto holdings, which have been a central obstacle to passing the market-structure bill. Lawmakers have been negotiating the addendum in recent weeks as a compromise to break the legislative impasse.
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However, the reported tax-deferral clause has introduced a fresh layer of contention. Critics argue that the benefit could undermine the very purpose of the ethics deal, allowing the president to profit from a forced sale while avoiding the usual tax consequences. Senators on the Democratic side are reportedly questioning whether the arrangement genuinely curbs Trump’s financial entanglements or merely provides a favorable exit.
Trump’s crypto income under the microscope
The controversy comes amid renewed scrutiny of Trump’s financial disclosures. His annual report for 2025, released in late June, revealed roughly $1.4 billion in income from crypto-related ventures over the past year. The 927-page filing showed that licensing and sales of memecoins, including Official Trump (TRUMP), generated the largest share — about $635 million in royalties from an agreement with Celebration Coins.
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World Liberty Financial, the Trump family’s decentralized finance platform, ranked second, bringing in approximately $588 million from token sales. The disclosure also noted a modest $197 from the sale of an equity interest in a stablecoin venture.
Separate disclosures on World Liberty’s website indicate that DT Marks DEFI LLC, an entity tied to Trump and certain family members, holds roughly 38% of the equity interests in the platform’s parent company.
Why this matters for the CLARITY Act’s future
The CLARITY Act, which aims to establish a federal framework for digital asset markets, has been a priority for the crypto industry. The Senate had been expected to hold a vote on the bill, with Senate Banking Committee Chairman Tim Scott stating earlier this week that the chamber would vote on it “without any question.” However, a separate report suggested the vote may be pushed to September, reflecting the ongoing sensitivity of the ethics negotiations.
The tax-deferral provision could become a flashpoint in the coming days, potentially delaying the bill further or forcing lawmakers to revisit the addendum’s terms. For the crypto sector, the outcome will determine whether the long-awaited market structure legislation advances — and under what conditions.
Conclusion
The reported ethics deal represents a delicate balancing act between addressing legitimate conflict-of-interest concerns and maintaining political momentum for the CLARITY Act. While the tax-deferral benefit may ease the president’s compliance burden, it also risks deepening Democratic skepticism and complicating the bill’s path forward. As the Senate prepares for a potential vote, the details of the addendum — and its implications for both Trump’s finances and the broader crypto regulatory market — remain under close scrutiny.
FAQs
Q1: What is the CLARITY Act?
The CLARITY Act is a proposed US federal framework for digital asset market structure, aimed at clarifying regulatory jurisdiction over cryptocurrencies and providing rules for market participants. It has been a key legislative priority for the crypto industry.
Q2: Why is Trump required to divest from crypto businesses?
The ethics addendum reportedly requires the president to divest from crypto-related businesses to address conflicts of interest while the CLARITY Act is being considered. The goal is to separate Trump’s financial interests from legislation that could affect the industry.
Q3: How could the tax-deferral provision save Trump millions?
By allowing capital gains taxes to be deferred on forced divestitures, the president could postpone — and potentially reduce — the tax burden on profits from the sale of his crypto assets. The exact savings would depend on the size of the gains and future tax treatment, but Bloomberg’s report suggests the benefit could run into the millions.
This article is for informational purposes only and does not constitute financial advice. The cryptocurrency market is volatile and uncertain; readers should conduct their own research before making any investment decisions.
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