Proposed CLARITY ethics deal could save Trump millions in taxes: Bloomberg
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
A bipartisan ethics proposal related to the US crypto market structure bill, aimed at President Donald Trump, includes a provision requiring him to divest from crypto-related businesses. Bloomberg reported that the proposal could allow Trump to defer capital gains taxes on these divestitures, potentially saving him millions. This ethics addendum is part of efforts to resolve Democratic concerns about Trump’s crypto-related conflicts, which have been blocking the bill's passage.
Why it matters
The proposal matters because it addresses legislative gridlock caused by Democratic worries over Trump's financial interests in crypto. The potential tax deferral benefit for Trump could become a new point of contention, as Democrats may question whether the measure sufficiently curtails his financial conflicts. Resolving these concerns is key to advancing the market structure bill that impacts the crypto industry.
Key context
The crypto market structure bill has faced hurdles in Congress largely due to ethics concerns about Trump’s involvement in crypto ventures. Trump’s 2025 financial disclosure showed $1.4 billion in crypto-related income in the previous year, derived mainly from licensing memecoins and DeFi token sales. The ethics addendum is a recent attempt by senators to break the impasse by imposing divestment requirements on the president.
Key numbers and entities
President Donald Trump reported $1.4 billion in crypto-related income for the previous year. About $635 million came from royalties related to the Official Trump (TRUMP) memecoin via a license agreement with Celebration Coins, and about $588 million from token sales on the DeFi platform World Liberty Financial. The Trump-affiliated DT Marks DEFI LLC owns approximately 38% equity in World Liberty’s parent company.
What remains unclear
The ethics addendum has not been made public, and details on how the proposed capital gains tax deferral would operate remain unspecified. The White House has not commented on the report, and it is uncertain if or when the proposal will be finalized or accepted by all parties. The source does not flag any other open questions.