Ethics Addendum to the Clarity Act Could Offer President Trump Tax Deferral

On August 6, Reuters reported that senators have offered President Donald Trump a bipartisan ethics amendment intended to secure passage of the landmark crypto bill. The amendment, described by Bloomberg News, would require the president to divest from crypto-related businesses and would allow him to defer capital-gains taxes on his existing crypto holdings. The proposal has not been released publicly and remains under negotiation between the White House and lawmakers. The White House did not immediately comment on the report.

Reuters

The legislation, dubbed the Clarity Act, seeks to clarify the jurisdiction of U.S. financial regulators over digital assets. Proponents argue that clearer rules could encourage broader adoption of cryptocurrencies. The bill has been described as “long-awaited” by lawmakers, but its final text is still being shaped.

Reuters

In a filing made in June, Donald Trump reported that his family’s crypto ventures generated more than $1.4 billion in income for the prior year, indicating that a substantial portion of his earnings now derives from digital assets. If the ethics addendum is adopted, the deferral provision could provide a significant tax benefit by postponing capital-gains liability on those holdings.

Reuters

Senate Democrats have conditioned their support for the Clarity Act on the inclusion of a robust ethics provision that would limit personal profit from crypto activities by political figures, including the president. This demand reflects concerns about potential conflicts of interest. The bipartisan nature of the proposal suggests that lawmakers view the ethics amendment as a critical lever to move the bill forward, though its ultimate fate will depend on further negotiations and any response from the White House.

Reuters